Equity Clock

Stock Market Outlook for January 27, 2022

The hallmarks of market capitulation remain intact.

 

 

 

*** 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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Brown & Brown Inc. (NYSE:BRO) Seasonal Chart

Genworth Financial Inc. (NYSE:GNW) Seasonal Chart

Renewable Energy Group Inc. (NASD:REGI) Seasonal Chart

Shopify, Inc. (NYSE:SHOP) Seasonal Chart

PayPal Holdings, Inc. (NASD:PYPL) Seasonal Chart

 

 

 

The Markets

Stocks showed another volatile session on Wednesday as investors reacted to comments from Fed Chari Jerome Powell.  The S&P 500 Index ended the day with a decline of just less than two-tenths of one percent, remaining stuck below the 200-day moving average.  The longer the benchmark remains below this hurdle, the more the risks to this market grow.  The 200-day moving average is a widely followed hurdle by long-term investors and, historically, it has shut off buy programs so long as the value of the benchmark remains sustainably below.  The S&P 500 Index remains significantly oversold with the Relative Strength Index below 30 and MACD down sharply.  Both momentum indicators are sitting at the lowest levels since March of 2020.  While we have been suggesting that the first half of the year will be a tough period for stocks and a trader’s market has begun, it becomes clearer as each day passes.

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

• The hourly look at the large-cap benchmark and the rebound levels that are on our radar
• Evidence of market capitulation remain intact
• US Petroleum Status and the state of demand
• Energy sector stocks
• US New Home Sales
• Investor sentiment

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Sentiment on Wednesday, as gauged by the put-call ratio, ended neutral at 1.00.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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