Equity Clock

Stock Market Outlook for September 28, 2020

S&P 500 Index holding support at the 100-day moving average.

 

 

 

*** 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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United Continental Holdings Inc. (NASD:UAL) Seasonal Chart

Gentex Corp. (NASD:GNTX) Seasonal Chart

Selective Insurance Group, Inc. (NASD:SIGI) Seasonal Chart

Generac Holdings Inc. (NYSE:GNRC) Seasonal Chart

Schnitzer Steel Industries, Inc. (NASD:SCHN) Seasonal Chart

American Software, Inc. (NASD:AMSWA) Seasonal Chart

Check Point Software Technologies, Ltd. (NASD:CHKP) Seasonal Chart

Crown Holdings Inc. (NYSE:CCK) Seasonal Chart

Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (AMEX:ASHR) Seasonal Chart

Intrinsyc Technologies Corp. (TSE:ITC.TO) Seasonal Chart

 

 

The Markets

Stocks surged on Friday as investors took a stab at pegging a low following the pullback over the past few weeks.  The S&P 500 Index gained 1.60%, becoming pinned to a key psychological level around 3300.  The benchmark has bounced firmly from its rising 100-day moving average, a logical point for long-term investors to become enticed.  But reaction to the 50-day moving average overhead will provide the final tell of whether this is just a short-term pullback or an intermediate-term correction.  Momentum indicators are attempting to chart a low and curl higher, but, for now, the sell signals that were generated at the start of September remain intact. 

The technology sector topped the leaderboard on Friday as investors give the momentum trade another short.  Resistance for technology sector benchmarks remains around the 50-day moving average, a rejection from which would have negative intermediate-term implications.

On the economic front, a report on durable goods orders in the US was released before Friday’s opening bell.  The headline print of August’s report indicated that new orders in the US increased by 0.4% last month, which was weaker than the consensus analyst estimate that called for an increase of 1.5%.  Core capital goods orders, meanwhile, showed an increase of 1.8%, which was slightly stronger than the consensus analyst estimate that called for an increase of 1.7%.  Stripping out the seasonal adjustments, the value of manufacturers’ new orders for durable goods industries actually increased by 7.2% in August, which is weaker than the 10.5% rise that is average for this time of year.  The year-to-date change has now fallen back below the seasonal average trend by 1.7%.  This is the weakest pace since 2015.  We sent out further insight to subscribers intraday.  Signup now to see how to play the trends with regards to manufacturing activity through year-end.

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

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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