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Stock Market Outlook for May 15, 2018

Russell 2000 pulls back from resistance at all time high; bullish setup gives bias towards an upside breakout.

 

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:

Ames National Corp (NASD:ATLO) Seasonal Chart

Ames National Corp (NASD:ATLO) Seasonal Chart

BT Group plc. (NYSE:BT) Seasonal Chart

BT Group plc. (NYSE:BT) Seasonal Chart

Craft Brewers Alliance Inc. (NASD:BREW) Seasonal Chart

Craft Brewers Alliance Inc. (NASD:BREW) Seasonal Chart

Getty Realty Corp. Holding Co. (NYSE:GTY) Seasonal Chart

Getty Realty Corp. Holding Co. (NYSE:GTY) Seasonal Chart

Guyana Goldfields (TSE:GUY) Seasonal Chart

Guyana Goldfields (TSE:GUY) Seasonal Chart

Perrigo Co. (NYSE:PRGO) Seasonal Chart

Perrigo Co. (NYSE:PRGO) Seasonal Chart

Acadia Healthcare Company (NASD:ACHC) Seasonal Chart

Acadia Healthcare Company (NASD:ACHC) Seasonal Chart

Nam Tai Property Inc. (NYSE:NTP) Seasonal Chart

Nam Tai Property Inc. (NYSE:NTP) Seasonal Chart

 

 

The Markets

Stocks in the US closed mixed on Monday in a rather indecisive session.  The S&P 500 Index added just less than a tenth of one percent, remaining above short-term horizontal support at 2717.  Energy and health care led the market session as investors reacted to higher oil prices and the plans the Trump administration has to reduce drug prices.  The S&P 500 health care sector index recently charted double-bottom support around 915, which projects upside potential towards 1015 should resistance around 965 break.  Seasonally, various industries in the health care sector benefit from positive seasonal tendencies between the end of April and the beginning of December. 

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Energy Sector Seasonal Chart

ENERGY Relative to the S&P 500
ENERGY Relative to the S&P 500

ENERGY Monthly Averages

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Healthcare Sector Seasonal Chart

HEALTHCARE Relative to the S&P 500
HEALTHCARE Relative to the S&P 500

HEALTHCARE Monthly Averages

The mixed session for the broad market benchmarks had investors booking profits in the small-cap Russell 2000 Index precisely around the all-time high and horizontal resistance at 1615.  An ascending triangle pattern on the chart of the small cap benchmark gives the bias to an upside breakout, perhaps after a bit of digestion of the recent gains.  A break of long-term trendline support at 1525 would violate the bullish chart pattern.  The small caps are often looked to as a gauge of investor risk sentiment and the fact that these riskier investments have been leading the broader market bodes well overall.  Seasonally, the Russell 2000 Index tends to outperform the S&P 500 Index between the middle of May and the end of June, primarily due to the later reporting schedule of the constituents within.

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RUSSELL 2000 Index Seasonal Chart

$RUT Relative to the S&P 500
$RUT Relative to the S&P 500

$RUT Monthly Averages

Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.88.

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Seasonal charts of companies reporting earnings today:

Affimed N.V. (AFMD) Seasonal Chart Avino Silver (ASM) Seasonal Chart AZZ Inc. (AZZ) Seasonal Chart Boot Barn Holdings, Inc. (BOOT) Seasonal Chart  Concordia International Corp. (CXRX) Seasonal Chart  Digital Ally, Inc. (DGLY) Seasonal Chart Eagle Materials Inc (EXP) Seasonal Chart  Home Depot, Inc. (The) (HD) Seasonal Chart Netlist, Inc. (NLST) Seasonal Chart Palatin Technologies, Inc. (PTN) Seasonal Chart  SORL Auto Parts, Inc. (SORL) Seasonal Chart Sunworks, Inc. (SUNW) Seasonal Chart Titan Pharmaceuticals, Inc. (TTNP) Seasonal Chart Virtusa Corporation (VRTU) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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