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Stock Market Outlook for May 31, 2019


The technical barriers on the S&P 500 Index are as defined on the downside as they are on the upside.

 

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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Coca-Cola Bottling Co. Consolidated (NASD:COKE) Seasonal Chart

Coca-Cola Bottling Co. Consolidated (NASD:COKE) Seasonal Chart

Johnson & Johnson (NYSE:JNJ) Seasonal Chart

Johnson & Johnson (NYSE:JNJ) Seasonal Chart

Consolidated Communications Holdings Inc. (NASD:CNSL) Seasonal Chart

Consolidated Communications Holdings Inc. (NASD:CNSL) Seasonal Chart

Renasant Corp. (NASD:RNST) Seasonal Chart

Renasant Corp. (NASD:RNST) Seasonal Chart

Connecticut Water Service, Inc. (NASD:CTWS) Seasonal Chart

Connecticut Water Service, Inc. (NASD:CTWS) Seasonal Chart

Gilead Sciences, Inc. (NASD:GILD) Seasonal Chart

Gilead Sciences, Inc. (NASD:GILD) Seasonal Chart

ScanSource, Inc. (NASD:SCSC) Seasonal Chart

ScanSource, Inc. (NASD:SCSC) Seasonal Chart

Enerflex Ltd. (TSE:EFX.TO) Seasonal Chart

Enerflex Ltd. (TSE:EFX.TO) Seasonal Chart

Welltower Inc. (NYSE:WELL) Seasonal Chart

Welltower Inc. (NYSE:WELL) Seasonal Chart

 

 

The Markets

Stocks closed mildly higher on Thursday, but investors remain on edge as they wait for the next move in the progressing trade war between the US and China.  The S&P 500 Index added around two-tenths of one percent, supported by a reprieve of selling pressures in technology and consumer discretionary stocks.  With the uncertainty of what the headlines will deliver next, the price action of the large-cap benchmark is keeping within the hurdles of the technical barriers that have been highlighted previously.  At the highs of Thursday’s session, the S&P 500 Index tested horizontal resistance at 2800, representing the neckline to the head-and-shoulders topping pattern.  Gap resistance in the range of 2790 to 2800 presents a hurdle for the benchmark to chip away at over the short-term. 

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The level of resistance overhead appears well defined and support below is showing a defined path of its own.  Through the first half of May, the benchmark held within a defined declining trend channel, from which it broke out of in the second half of the month, initiating a new short-term path of lower-lows and lower-highs.  This new path forms its lower limit along the same declining trendline as the upper limit of the previous declining channel.  As with price, momentum indicators on this short-term look are also charting lower-lows and lower highs, suggesting no signs of waning selling pressures yet. 

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Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.10.  Increasingly, investors are hedging portfolio positions and allocating toward defensive bets, the effect of which mitigates the desire of portfolio managers to sell positions. This bearish consensus typically leads to selling exhaustion, creating opportunities for a rebound attempt.

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Seasonal charts of companies reporting earnings today:

Big Lots, Inc. (BIG) Seasonal Chart Build-A-Bear Workshop, Inc. (BBW) Seasonal Chart Conn's, Inc. (CONN) Seasonal Chart Genesco Inc. (GCO) Seasonal Chart 

 

 

S&P 500 Index

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TSE Composite

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