Equity Clock

Stock Market Outlook for January 19, 2022

S&P 500 Index has broken through neckline support to a head-and-shoulders pattern.

 

 

 

*** 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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Etho Climate Leadership US ETF (AMEX:ETHO) Seasonal Chart

SVB Financial Group (NASD:SIVB) Seasonal Chart

BJ’s Restaurants Inc. (NASD:BJRI) Seasonal Chart

Whiting Petroleum Corp (NYSE:WLL) Seasonal Chart

TWC Enterprises Limited (TSE:TWC.TO) Seasonal Chart

First Trust US IPO Index Fund (NYSE:FPX) Seasonal Chart

First Australia Fund, Inc. (AMEX:IAF) Seasonal Chart

 

 

 

The Markets

Stocks sold off to start the week as a jump in treasury yields had investors once again liquidating shares in the technology sector.  The S&P 500 Index fell by 1.84%, which is the second largest one-day decline of the year, so far.  The large-cap benchmark has closed below rising trendline support, resolving a triangle consolidation range that initially recorded a false breakout above 4720 during the Santa Claus rally period at the end of the year.  The rising 100-day moving average is now the focus given the support characteristics that is has provided since the start of October.  A violation of this hurdle increases the likelihood of a swift move lower to the 200-day moving average as the normal and healthy market pullback plays out.  Momentum indicators are still trending lower as buying demand in the market remains absent.

Today, in our Market Outlook to subscribers, we discuss the following:

• The surge in the cost of borrowing and the likely target of the 10-year treasury note in the near-term
• The break of neckline support to a head-and-shoulders pattern on the S&P 500 Index
• Notable ratings changes in our weekly chart books: Find out which industries have been upgraded to Accumulate, despite the selloff in the broader market
• US Dollar and the important level that it bounced from in the Tuesday session
• The concern that has become apparent for manufacturer sentiment

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Want to know which areas of the market to buy or sell?  Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market.  Subscribers can login and click on the relevant links to access.

• Currencies
• Cryptocurrencies
• Commodities
• Major Benchmarks
• Sub-sectors / Industries

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Sentiment on Monday, as gauged by the put-call ratio, ended slightly bearish at 1.02.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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