Equity Clock

Stock Market Outlook for March 27, 2026

Concerns, concerns, and more concerns.

*** 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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Stock Highlight:
Companhia de Saneamento (NYSE:SBS) Seasonal Chart	Optimal holding period from March 27th to July 17th Remains within a long-term rising trend, supported at its 20-week moving average (~$26.20): Stop loss appropriate within a 5% band below the variable hurdle around $25.00 Company engages in the provision of water and sewage services and has seen year-over-year growth in both revenues and net income

Vertex Pharmaceuticals Inc. (NASD:VRTX) Seasonal Chart

Franklin FTSE Latin America ETF (AMEX:FLLA) Seasonal Chart

Wheeler Real Estate Investment Trust, Inc. (NASD:WHLRP) 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 lost ground on Thursday as the price of oil and interest rates spiked amidst ongoing uncertainty pertaining to the conflict in Iran.  The S&P 500 Index closed down by 1.74%, cracking below substantial upside gap charted at Monday’s open between 6500 and 6575 and reaching back to Friday’s low; the benchmark continues to struggle to derive a durable level/zone as support.  The limits of the declining trend channel continue to be respected (lower limit was tested on Friday) and the band between 6500 and 6600 that we have speculated as likely to provide support has developed a crack following Thursday’s price action.  While the short-term technicals are presenting renewed concern and the longer-term technical profile of the market has become threatening, we still have a focus on the near-term positivity in equity markets heading into the seasonally strong period during the month of April.  In the Seasonal Advantage Portfolio that we manage for clients at CastleMoore, we rotated away from our low volatility posture and added to risk exposure at the end of last week for the seasonally strong window that runs through the next four to six weeks.  The conflict in Iran remains a wildcard and we are running down our cues that would warrant a more defensive posture in risk assets, but the net of all developments following Thursday’s action between technicals, fundamentals, and seasonals for the near-term continue to provide the edge to an upside bias.  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 & Technicals: Cracks Forming
• Positioning: Staying Risk-On (Cautiously)
• Oil: The Market’s Anchor (and Risk)
• Technology: Major Warning Signal
• Rates: A Structural Headwind Becoming Increasingly Ingrained
• Deleveraging Risk: A Bigger Underlying Concern
• Rotation Theme: Still Intact
• Economy Check: Coincident Signals of Economic Degradation have yet to Trigger

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Sentiment on Thursday, as gauged by the put-call ratio, ended neutral at 1.00.

Seasonal charts of companies reporting earnings today:

S&P 500 Index

TSE Composite

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