Stock Market Outlook for September 16, 2026
Risks to the foundation of the market heading into the FOMC event.
*** 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.
Oak Valley Bancorp (NASD:OVLY) Seasonal Chart
Central Securities Corp. (AMEX:CET) Seasonal Chart
iShares Global Water Index ETF (TSE:CWW.TO) Seasonal Chart
Camden National Corp. (NASD:CAC) Seasonal Chart
Universal Electronics, Inc. (NASD:UEIC) 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 remained weak into the widely anticipated FOMC event on Wednesday where the committee is largely expected to raise rates for the first time in three years amidst inflationary pressures that have become uncomfortable to the bond market in recent weeks/months. The S&P 500 Index slipped by another half of one percent, weakening below previous resistance and implied support at 7620. Next level of support below 7620 can be pegged at the mid-July highs around 7575, a level that was tested a the lows of the Tuesday session. A break of horizontal limit would start to invalidate the short-term bull-flag pattern that we have been highlighting in recent weeks. The 50-day moving average (~7611) has been cracks again amidst what has essentially been a sideways drift since the start of June. Historically, the most volatile period for equity performance in the year is just days away, therefore heightened caution is becoming appropriate. In the Seasonal Advantage Portfolio that we manage for clients at CastleMoore, we continue to hold an elevated exposure to stocks, aligning with the optimism that the manufacturing economy is expressing, but our patience is growing thin and we may need to adjust should the persistency of headwinds against stocks (outside of energy) endure. Subscribers can view what we are targeting in our list of market segments to either Accumulate or Avoid.
Today, in our Market Outlook to subscribers, we discuss the following:
- Technical deterioration in the bond market
- Utilities at 52-week lows
- Oil above $100
- Industrials
- Volatility Index
- Canada Consumer Price Index (CPI) and the Canadian Dollar
- Canada Manufacturing Sales, what is driving activity, and where to point investments
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for September 16
Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.87.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
