Stock Market Outlook for January 23, 2026
The equity market may have healed following early-week weakness, but it is the asset classes that haven’t recovered that is presenting a warning of what may be ahead for risk assets.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
BCE, Inc. (NYSE:BCE) Seasonal Chart
Grayscale Ethereum Trust (AMEX:ETHE) Seasonal Chart
Invesco S&P 500 Quality ETF (AMEX:SPHQ) Seasonal Chart
Coca Cola Co. (NYSE:KO) Seasonal Chart
Andersons, Inc. (NASD:ANDE) Seasonal Chart
Carpenter Tech Corp. (NYSE:CRS) Seasonal Chart
VeriSign, Inc. (NASD:VRSN) Seasonal Chart
Companhia Energetica de Minas Gerais (Cemig) (NYSE:CIG) Seasonal Chart
Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered is believed to be accurate, but is not guaranteed.
The Markets
Stocks continued to heal following Tuesday’s sharp and abrupt selloff as investors found relief in the alleviation of geopolitical tensions. The S&P 500 Index closed higher by just over half of one percent, closing the gap that was opened at the start of the week around 6900. The benchmark is, once again, solidifying a position above previous October gap resistance turned support around 6830, keeping us engaged with equity exposure until definitively broken. The lower limit of the previous narrowing range that we have been profiling for the past month remains broken and is showing hints of imposing a point of resistance, along with the aforementioned downside gap at 6900. As highlighted in our recent reports, the triggers have been present to trim equity exposure, but we have had little desire to participate in the panic selling that played out to start the week. Prior to Tuesday’s session, the market was showing greater respect to levels of support than to levels of resistance, but the price action this week threatens to flip this stance; should this become confirmed, looking to trim equity exposure will become prudent, bracing for the kind of volatility that is average around this time of year. In the Seasonal Advantage Portfolio that we oversee at Castlemoore, after enacting trades last week to reduce sensitivity to growth (Technology) segments of the market, there have been no trades that were considered to be required, so far, this week and we continue to benefit from our pro-cyclical stance. We continue to tailor towards the themes in our chart books to either Accumulate or Avoid that have been capturing the strength and rotation that has filtered into the market from the November 20th lows.
Today, in our Market Outlook to subscribers, we discuss the following:
- Market Recovery & Technical Levels
- Portfolio Positioning
- Bond Market Warning Signals
- Cost of Borrowing & Economic Risk
- Cryptocurrency as a Leading Indicator
- Labor Market Check
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for January 23
Not signed up yet? Subscribe now to receive full access to all of the research and analysis that we publish
Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.76.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
