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Stock Market Outlook for May 8, 2018

Benchmarks back against declining trendline resistance. Next move may be critical.

 

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:

Northwest Natural Gas (NYSE:NWN) Seasonal Chart

Northwest Natural Gas (NYSE:NWN) Seasonal Chart

Seattle Genetics Inc. (NASD:SGEN) Seasonal Chart

Seattle Genetics Inc. (NASD:SGEN) Seasonal Chart

FactSet Research Systems Inc.  (NYSE:FDS) Seasonal Chart

FactSet Research Systems Inc. (NYSE:FDS) Seasonal Chart

American States Water Co. (NYSE:AWR) Seasonal Chart

American States Water Co. (NYSE:AWR) Seasonal Chart

Momenta Pharmaceuticals Inc. (NASD:MNTA) Seasonal Chart

Momenta Pharmaceuticals Inc. (NASD:MNTA) Seasonal Chart

Support.com, Inc. (NASD:SPRT) Seasonal Chart

Support.com, Inc. (NASD:SPRT) Seasonal Chart

 

 

The Markets

Stocks closed higher on Monday, adding to Friday’s gain following a middle-ground employment report for the month of April.  The S&P 500 Index added just over a third of one percent, testing the 50-day moving average around the highs of the session.  The intermediate hurdle continues to point lower, moving in on the 200-day in what would be a bearish crossover event, if realized.  This range between resistance at the 50-day and support at the 200-day is gradually narrowing, suggesting a resolution to the consolidation range should be expected soon.

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Monday’s gain places major benchmarks up against declining trendline resistance that has constrained upside momentum for much of the year.  The next move in the market could be critical, either confirming the resistance overhead or brining an end to the consolidation range should prices breakout.  The percent of stocks trading  above 200-day moving averages remains in cautionary territory below 63%, but it has held firm around the lows of 50%.  Much like the boarder market, stocks will react to this major level of support/resistance, so if you have half of the stocks in the market holding on to support and the other half seeing this level as resistance, then you will get this indecisive trading action that we have seen over the past few months.  At roughly the two-thirds mark of stocks above or below the long-term average, momentum in the direction of the long-term trend can be maintained, either higher or lower.  The breadth indicator fell below the two-thirds mark in the middle of March just as the S&P 500 Index started to show struggle around its 50-day moving average, suggesting another retest of the low was likely.    Market participants now need to gain confidence that the low is past in order to push stocks above resistance overhead.  Watch the market action in the coming days as it could be significant, in either direction.

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Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.93.

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Seasonal charts of companies reporting earnings today:

Abraxas Petroleum Corporation (AXAS) Seasonal Chart AECOM (ACM) Seasonal Chart Aqua America, Inc. (WTR) Seasonal Chart Beacon Roofing Supply, Inc. (BECN) Seasonal Chart Bellatrix Exploration Ltd (BXE) Seasonal Chart CA Inc. (CA) Seasonal Chart  Cimarex Energy Co (XEC) Seasonal Chart Convergys Corporation (CVG) Seasonal Chart Dean Foods Company (DF) Seasonal Chart Diamondback Energy, Inc. (FANG) Seasonal Chart Discovery, Inc. (DISCA) Seasonal Chart DISH Network Corporation (DISH) Seasonal Chart Electronic Arts Inc. (EA) Seasonal Chart Farmer Brothers Company (FARM) Seasonal Chart Fossil Group, Inc. (FOSL) Seasonal Chart FTD Companies, Inc. (FTD) Seasonal Chart Gartner, Inc. (IT) Seasonal Chart Henry Schein, Inc. (HSIC) Seasonal Chart Jacobs Engineering Group Inc. (JEC) Seasonal Chart Jazz Pharmaceuticals plc (JAZZ) Seasonal Chart Kinross Gold Corporation (KGC) Seasonal Chart Mallinckrodt plc (MNK) Seasonal Chart Marriott International (MAR) Seasonal Chart Martin Marietta Materials, Inc. (MLM) Seasonal Chart Maxwell Technologies, Inc. (MXWL) Seasonal Chart Microchip Technology Incorporated (MCHP) Seasonal Chart Monster Beverage Corporation (MNST) Seasonal Chart Northwest Natural Gas Company (NWN) Seasonal Chart Occidental Petroleum Corporation (OXY) Seasonal Chart Papa John's International, Inc. (PZZA) Seasonal Chart Perrigo Company (PRGO) Seasonal Chart Plains All American Pipeline, L.P. (PAA) Seasonal Chart Sturm, Ruger & Company, Inc. (RGR) Seasonal Chart Sun Life Financial Inc. (SLF) Seasonal Chart Tetra Technologies, Inc. (TTI) Seasonal Chart The Hain Celestial Group, Inc. (HAIN) Seasonal Chart TransAlta Corporation (TAC) Seasonal Chart TripAdvisor, Inc. (TRIP) Seasonal Chart U.S. Auto Parts Network, Inc. (PRTS) Seasonal Chart Valeant Pharmaceuticals International, Inc. (VRX) Seasonal Chart Walt Disney Company (The) (DIS) Seasonal Chart Wendy's Company (The) (WEN) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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