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Stock Market Outlook for April 24, 2019


Stocks chart new closing highs as investors remain risk-on.

 

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:

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Incyte Corp. (NASD:INCY) Seasonal Chart

Incyte Corp. (NASD:INCY) Seasonal Chart

Luminex Corp. (NASD:LMNX) Seasonal Chart

Luminex Corp. (NASD:LMNX) Seasonal Chart

Cornerstone OnDemand, Inc. (NASD:CSOD) Seasonal Chart

Cornerstone OnDemand, Inc. (NASD:CSOD) Seasonal Chart

 

 

The Markets

Stocks marched forward on Tuesday as investors welcomed better than expected earnings from some notable market heavyweights.  The S&P 500 Index climbed almost nine-tenths of one percent, charting a new all-time closing high.  The benchmark remains mere points away from the all-time intraday high charted around 2940, achieved just prior to the fourth quarter swoon.  The benchmark has now realized the short-term target presented by the ascending triangle continuation pattern that we have been highlighting over the past week.  Short and intermediate-term overbought signals could stall upside momentum ahead.

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New all-time closing highs were shared by the Nasdaq Composite, which is similarly inching closer to the all-time intraday highs recorded in the third quarter of last year.  The technology heavy index was higher by 1.32% on Tuesday, continuing a trend of outperformance versus the large-cap S&P 500 Index.  The performance of the technology sector has far surpassed that of the market in 2019 as investors re-join the growth trade.  The sector, which represents almost 22% of the S&P 500 Index, can provide an important tell of the momentum of the broader market.  Through the summer of 2018, underperformance of technology stocks suggested lack of investor enthusiasm to chase risk, leading to the massive rotation during the third quarter and eventually resulting in the downfall in stocks that followed. Should strength in cyclical sectors give way to outperformance in defensive areas of the market, we will know that investor enthusiasm towards risk has again shifted, but, for now, things are risk-on, which is conducive to the bull market rebound from the December lows.

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Another gauge of risk sentiment may take its own shot at breaking out.  The Russell 2000 Small Cap Index has been stuck below resistance around 1600 for the past couple of months, carving out what appears to be the right shoulder to a massive head-and-shoulders bottoming pattern.  The index bounced firmly from its rising 50-day moving average during Tuesday’s session, rebounding to levels back above its 200-day moving average.  Confirmation of the breakout could entice further buyers from the sidelines who have pessimistic of the strength of stocks.  Seasonally, the Russell 2000 has historically outperformed the S&P 500 Index, on average, between now and the end of the second quarter.

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http://charts.equityclock.com/seasonal_charts/indexes/$RUT_RelativeToSPX.PNG

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.81.

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Seasonal charts of companies reporting earnings today:

Air Products and Chemicals, Inc. (APD) Seasonal Chart Align Technology, Inc. (ALGN) Seasonal Chart AMERIPRISE FINANCIAL SERVICES, INC. (AMP) Seasonal Chart Amphenol Corporation (APH) Seasonal Chart Anthem, Inc. (ANTM) Seasonal Chart AT&T Inc. (T) Seasonal Chart AvalonBay Communities, Inc. (AVB) Seasonal Chart Avery Dennison Corporation (AVY) Seasonal Chart Biogen Inc. (BIIB) Seasonal Chart Boeing Company (The) (BA) Seasonal Chart Boston Beer Company, Inc. (The) (SAM) Seasonal Chart Boston Scientific Corporation (BSX) Seasonal Chart Brink's Company (The) (BCO) Seasonal Chart Caterpillar, Inc. (CAT) Seasonal Chart Cenovus Energy Inc (CVE) Seasonal Chart Chipotle Mexican Grill, Inc. (CMG) Seasonal Chart Churchill Downs, Incorporated (CHDN) Seasonal Chart Citrix Systems, Inc. (CTXS) Seasonal Chart Credit Suisse Group (CS) Seasonal Chart Domino's Pizza Inc (DPZ) Seasonal Chart DTE Energy Company (DTE) Seasonal Chart Duke Realty Corporation (DRE) Seasonal Chart Essex Property Trust, Inc. (ESS) Seasonal Chart F5 Networks, Inc. (FFIV) Seasonal Chart Facebook, Inc. (FB) Seasonal Chart  FLIR Systems, Inc. (FLIR) Seasonal Chart Forward Air Corporation (FWRD) Seasonal Chart General Dynamics Corporation (GD) Seasonal Chart Helmerich & Payne, Inc. (HP) Seasonal Chart Lam Research Corporation (LRCX) Seasonal Chart Microsoft Corporation (MSFT) Seasonal Chart Moody's Corporation (MCO) Seasonal Chart Nasdaq, Inc. (NDAQ) Seasonal Chart NETGEAR, Inc. (NTGR) Seasonal Chart Northrop Grumman Corporation (NOC) Seasonal Chart Novartis AG (NVS) Seasonal Chart O'Reilly Automotive, Inc. (ORLY) Seasonal Chart Owens Corning Inc (OC) Seasonal Chart Packaging Corporation of America (PKG) Seasonal Chart Raymond James Financial, Inc. (RJF) Seasonal Chart Spirit Airlines, Inc. (SAVE) Seasonal Chart Stanley Black & Decker, Inc. (SWK) Seasonal Chart Thermo Fisher Scientific Inc (TMO) Seasonal Chart Trinity Industries, Inc. (TRN) Seasonal Chart Tupperware Brands Corporation (TUP) Seasonal Chart Visa Inc. (V) Seasonal Chart Waste Connections, Inc. (WCN) Seasonal Chart Xilinx, Inc. (XLNX) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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