Stock Market Outlook for January 16, 2023
*** 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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Jack In The Box, Inc. (NASD:JACK) Seasonal Chart
Unilever PLC (NYSE:UL) Seasonal Chart
SCP Pool Corp. (NASD:POOL) Seasonal Chart
ProShares Large Cap Core Plus (NYSE:CSM) Seasonal Chart
Cummins Inc. (NYSE:CMI) Seasonal Chart
Gap, Inc. (NYSE:GPS) Seasonal Chart
SPDR S&P Retail ETF (NYSE:XRT) Seasonal Chart
Note: Due to the Martin Luther King Day holiday on Monday, our next Market Outlook will be released on Tuesday.
The Markets
Stocks edged mildly higher on Friday as fourth quarter earnings season got underway with reports from some of the big US banks. The S&P 500 Index punched out a gain of four-tenths of one percent, inching above resistance at the 200-day moving average at 3981 and continuing to pressure long-term declining trendline resistance at 4000. Momentum indicators remain on buy signals following the bullish crossover with respect to MACD that was recorded one week ago and, gradually, characteristics of a bearish trend are being alleviated as MACD and RSI advance into the upper half of their ranges. The price action over the past week seemingly confirms a higher intermediate low given the bounce from November’s gap support between 3770 and 3860. The next step to definitively say that the market has past this trajectory of lower-highs and lower-lows over an intermediate-term timeframe would be a move above the December peak around 4100. The 50-day moving average, indicative of the direction of the intermediate-term path, continues to point higher and is now back in a position of support around 3900.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- Head-and-shoulders bottoming patterns becoming common across the charts, particularly those that follow international equities
- The correlation of the Gold/Stock ratio with the relative performance of international equities
- CASS Freight Index and the state of shipping activity
- Transportation stocks
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for January 16
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Sentiment on Friday, as gauged by the put-call ratio, ended close to neutral at 0.95.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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