Stock Market Outlook for December 14, 2020
Santa Claus coming to town?
*** 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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The Markets
Stocks dipped slightly on on Friday as investors continue to monitor the progress of stimulus negotiations in the US. The S&P 500 Index slipped by just over a tenth of one percent, still managing to hold on to the psychologically important 3600 level. At the lows of the session, the large-cap benchmark once again tested short-term support around its rising 20-day moving average at 3636 and, once again, the short-term hurdle held, drawing in buyers to continue to support this market. Downside risks remain to the intermediate hurdle at the 50-day moving average, now hovering around 3518. Momentum indicators continue to roll over following the previous session’s sell signal with respect to MACD, however, they remain far off from deriving characteristics of a bearish trend. The breakout of the previous 300-point trading range between 3200 and 3500 projects upside towards 3800, now just under 4% above present levels.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the S&P 500 Index
- Santa Claus Rally and how to best take advantage
- Critical datapoints for the week ahead
- Institutional sentiment and what it has to say about how they are positioning
and we’ll send this outlook to you.
Sentiment on Friday, as gauged by the put-call ratio, ended close to neutral at 0.97.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
