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Stock Market Outlook for February 21, 2018

Equity benchmarks turning lower from key technical levels.

 

Real Time Economic Calendar provided by Investing.com.

 

*** 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:

Coffee Holding Co. Inc. (NASD:JVA) Seasonal Chart

Coffee Holding Co. Inc. (NASD:JVA) Seasonal Chart

Helix Energy Solutions Group (NYSE:HLX) Seasonal Chart

Helix Energy Solutions Group (NYSE:HLX) Seasonal Chart

Energen Corp. (NYSE:EGN) Seasonal Chart

Energen Corp. (NYSE:EGN) Seasonal Chart

WestRock Co. (NYSE:WRK) Seasonal Chart

WestRock Co. (NYSE:WRK) Seasonal Chart

Huntington Bancshares Inc. (NASD:HBANP) Seasonal Chart

Huntington Bancshares Inc. (NASD:HBANP) Seasonal Chart

Ares Capital Corp. (NASD:ARCC) Seasonal Chart

Ares Capital Corp. (NASD:ARCC) Seasonal Chart

Carter Holdings Inc. (NYSE:CRI) Seasonal Chart

Carter Holdings Inc. (NYSE:CRI) Seasonal Chart

Ritchie Bros. Auctioneers Inc. (NYSE:RBA) Seasonal Chart

Ritchie Bros. Auctioneers Inc. (NYSE:RBA) Seasonal Chart

Total System Services, Inc.  (NYSE:TSS) Seasonal Chart

Total System Services, Inc. (NYSE:TSS) Seasonal Chart

FMC Corporation  (NYSE:FMC) Seasonal Chart

FMC Corporation (NYSE:FMC) Seasonal Chart

Charter Communications Inc. (NASD:CHTR) Seasonal Chart

Charter Communications Inc. (NASD:CHTR) Seasonal Chart

DowDuPont Inc. (NYSE:DWDP) Seasonal Chart

DowDuPont Inc. (NYSE:DWDP) Seasonal Chart

 

 

The Markets

Stocks closed firmly lower on Tuesday in what appears to be reaction to some key technical levels amongst major market benchmarks.  The S&P 500 Index fell by close to six-tenths of one percent, turning lower from its declining 20-day moving average, which was tested at the highs on Friday.  Other benchmarks are turning lower from similar levels, including the Dow Jones Industrial Average, Dow Jones Transportation Average, and Russell 2000 Index. So far, the weakness in broad equity markets remains within a short-term time scale, but the convergence of the 20-day with the 50-day moving average suggests the risk of a more intermediate-term move is growing.  The long-term positive profile, however, remains intact.  Should the short and intermediate-term moving averages hold as resistance overhead, then a test of the recent low is almost inevitable.  Daily momentum indicators for the large-cap index remain in bearish territory, below 50 on the relative strength index and below 0 on MACD.  It is typically in the month of March, in the run-up to the first quarter earnings season, that strength typically returns to equity markets, implying this volatile trading environment could persist for at least the next week or two.

The decline in the S&P 500 Index during Tuesday’s session also comes at another important technical level.  Looking at the hourly chart of the large-cap index, 2743 is the 61.8% retracement level of the approximately 340-point plunge that played out between the end of January and start of February.  This Fibonacci level, also referred to as the golden ratio, tends to fuel reaction in the market as investors gauge the strength of the counter-trend move.  The 50% retracement level around 2703 was tested at the lows of Tuesday’s session.  Levels between the 31.8% and 50% retracement levels warrant monitoring as a failure from this zone would likely translate to a intermediate trend shift, possibly resulting in a violation of the early February lows.

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.86.

 

 

 

 

Seasonal charts of companies reporting earnings today:

Advance Auto Parts Inc (AAP) Seasonal Chart Alleghany Corporation (Y) Seasonal Chart Avis Budget Group, Inc. (CAR) Seasonal Chart Boston Beer Company, Inc. (The) (SAM) Seasonal Chart Bridgepoint Education, Inc. (BPI) Seasonal Chart Cheniere Energy, Inc. (LNG) Seasonal Chart Compugen Ltd. (CGEN) Seasonal Chart Continental Resources, Inc. (CLR) Seasonal Chart Convergys Corporation (CVG) Seasonal Chart Delphi Technologies PLC (DLPH) Seasonal Chart DISH Network Corporation (DISH) Seasonal Chart Dynex Capital, Inc. (DX) Seasonal Chart Endologix, Inc. (ELGX) Seasonal Chart Energy Transfer Equity, L.P. (ETE) Seasonal Chart Energy Transfer Partners, L.P. (ETP) Seasonal Chart Great Plains Energy Inc (GXP) Seasonal Chart HollyFrontier Corporation (HFC) Seasonal Chart Host Hotels & Resorts, Inc. (HST) Seasonal Chart Hudbay Minerals Inc. (HBM) Seasonal Chart Iamgold Corporation (IAG) Seasonal Chart Jack In The Box Inc. (JACK) Seasonal Chart Kaiser Aluminum Corporation (KALU) Seasonal Chart  Lydall, Inc. (LDL) Seasonal Chart Navios Maritime Holdings Inc. (NM) Seasonal Chart Noble Corporation (NE) Seasonal Chart Owens Corning Inc (OC) Seasonal Chart Realty Income Corporation (O) Seasonal Chart Southern Company (The) (SO) Seasonal Chart Stericycle, Inc. (SRCL) Seasonal Chart Sturm, Ruger & Company, Inc. (RGR) Seasonal Chart Summit Hotel Properties, Inc. (INN) Seasonal Chart Sunoco LP (SUN) Seasonal Chart Synopsys, Inc. (SNPS) Seasonal Chart Tile Shop Hldgs, Inc. (TTS) Seasonal Chart United Therapeutics Corporation (UTHR) Seasonal Chart Vonage Holdings Corp. (VG) Seasonal Chart Whiting Petroleum Corporation (WLL) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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