S&P 500 failed to hold gap support around 2755; a test of the open gap around 2700 may be next. 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: Medical Facilities (TSE:DR) Seasonal Chart Chartwell Retirement (TSE:CSH-UN) Seasonal Chart Capital Power (TSE:CPX) Seasonal Chart Altius Minerals Corporation (TSE:ALS) Seasonal Chart Chorus Aviation Inc (TSE:CHR) Seasonal Chart Corus Entertainment Inc. (TSE:CJR.B) Seasonal Chart Enbridge Income Fund Holdings (TSE:ENF) Seasonal Chart Cogeco Cable Inc. (TSE:CCA) Seasonal Chart ATCO Ltd. (TSE:ACO.X) Seasonal Chart Precision Drilling Corporation (TSE:PD) Seasonal Chart Boston Pizza Royalties Income Fund (TSE:BPF-UN) Seasonal Chart Interpublic Group of Companies, Inc. (NYSE:IPG) Seasonal Chart The Markets Stocks sold off on Monday as Tech stocks followed through with Friday’s weakness. The S&P 500 Index shed 1.97%, filling the gap that was opened following the US mid-term election and breaking back below its 200-day moving average. A look at the hourly chart of the large-cap benchmark shows the action. The benchmark failed to find support at 2755, a level that has derived a couple of gaps over the past few weeks. The next level to watch is the open gap around 2700, perhaps the last zone to save the market from a more pronounced decline. Momentum indictors on this hourly look have fallen back to oversold territory, working off the overbought state following last Wednesday’s high. In the Seasonal Advantage Portfolio that we manage in partnership with CastleMoore, we slightly trimmed portfolio beta on Friday, reflecting the increasing risks in the Technology Sector, the largest weight within many broad market benchmarks. Interested in learning more? Email us at seasonalportfolio@equityclock.com. The technology sector has typically been one of the strongest segments of the market through the fourth quarter, therefore the weakness that has been apparent since the start of October is no doubt concerning. The S&P 500 Technology Sector Index is back around the October lows, failing to hold any ground following the recent rebound attempt. The benchmark is turning lower right at its 200-day moving average, a level that it has only fallen below during times of economic weakness over the past ten years. The last time it held below this level was in the correction of 2015 and 2016 when an earnings recession and manufacturing downturn took a toll on cyclical areas of the market. The price action in the equity and commodity market in recent weeks is suggestive of a period of economic weakness ahead, signs of which may already be materializing. We have complied a list of fundamental concerns and published them in a special report available to Equity Clock Subscribers. Simply log into the Seasonal Chart Database and on the home page you will see a link to the report titled Ballooning Economic Concerns. For investors employing a three-pronged approach, such as what we enact with the Seasonal Advantage Portfolio, this report is not to be missed. Not a member yet? Simply visit the following link to subscribe: https://charts.equityclock.com/subscribe TECHNOLOGY Relative to the S&P 500 Sentiment on Monday, as gauged by the put-call ratio, ended bearish at 1.19. Sectors and Industries entering their period of seasonal strength: $NIKK Relative to the S&P 500 Seasonal charts of companies reporting earnings today: S&P 500 Index TSE Composite