Stock Market Outlook for March 20, 2026
The market is testing critical levels of support and now may be the time to pickup exposure to stocks that have pulled back in order to participate in the seasonal strength through the weeks ahead.
*** 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:
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RBC Bearings Inc. (NYSE:RBC) Seasonal Chart
Wells Fargo Advantage Utilities & High Income Fund (AMEX:ERH) Seasonal Chart
PepsiCo, Inc. (NASD:PEP) Seasonal Chart
Kimbell Royalty Partners, LP (NYSE:KRP) Seasonal Chart
Sabine Royalty Trust (NYSE:SBR) Seasonal Chart
Star Gas Partners L P (NYSE:SGU) Seasonal Chart
Caleres, Inc. (NYSE:CAL) Seasonal Chart
Trican Well Service Ltd. (TSE:TCW.TO) 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 slipped again on Thursday, albeit closing well off of their lows, as portfolios managers re-balanced their books, while remaining on edge pertaining to the Iran conflict, heading towards the end of the month and into options expiration day on Saturday. The S&P 500 Index closed down by just over a quarter of one percent, intersecting with its 200-day moving average for the first time since May of last year. Another downside gap was opened on the day between 6600 and 6625, a zone that was filled amidst an abrupt move higher through the final hour of the trading session. While an ultra-short-term declining trend remains intact, very short term pricing action has provided something to cue in on as the price of oil shows upside exhaustion and the benchmark intersects with a band between 6500 and 6600 that we have speculated as likely to provide support heading into the seasonal strength for stocks that is normal into April. In the Seasonal Advantage Portfolio that we manage for clients at CastleMoore, we have been looking for our spot to ramp up risk exposure again and the cues (which we lay out in today’s report) are aligning for us to do so for the seasonally strong window that runs through the next four to six weeks. Subscribers can view the themes in our chart books to either Accumulate or Avoid that are working and intact.
Today, in our Market Outlook to subscribers, we discuss the following:
- Market Action: Testing Critical Support
- Sector Rotation: Classic Mean Reversion
- Don’t Ignore these Significant Signals
- Strategy Shift: The Action we are Taking in the Super Simple Seasonal Portfolio
- Commodities: Still Strong Longer-Term, But Watching for Rotation
- Housing Market: Cracks Widening
- Labor Market: Still Steady
- Manufacturing: Sentiment Continues to Express Enthusiasm
- Sector Positioning
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for March 20
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Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.88.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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