Outside reversal candlesticks charted in the homebuilding and auto industries, hinting of a significant low. 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: Mylan Inc. (NASDAQ:MYL) Seasonal Chart Mosaic Co (NYSE:MOS) Seasonal Chart Orbotech Ltd. (NASD:ORBK) Seasonal Chart Akamai Technologies, Inc. (NASDAQ:AKAM) Seasonal Chart The Markets Stocks traded sharply lower on Tuesday as disappointing earnings from Caterpillar and 3M weighed on investor sentiment. The S&P 500 Index fell by 2.3% at the lows of the session, but rallied back to the flat-line as the day progressed as investors used the gap lower to purchase beaten down names. The SPDR S&P Bank ETF, highlighted in yesterday’s report, initially gapped lower to around the $41 range, then rallied back throughout the session to close nearly flat on the day. Homebuilding stocks did the same, charting outside reversal candlesticks in the process as investors flooded into this depressed industry. Auto companies saw similar price action. These industries have been the poster children for some of the headwinds facing the market, whether it pertain to the tariff war, rate concerns, or the fears of an economic slowdown, therefore the reversals that were recorded present an encouraging signal that the market is attempting to bottom follow a very weak October, thus far. But before we get all too enthusiastic about the depressed levels of stocks in order to put cash to work, the price action on Tuesday still caused damage amongst the major equity benchmarks in the US. The S&P 500 Index and Nasdaq Composite closed firmly below their 200-day moving averages, raising concerns that this long-term hurdle could act as resistance on any rebound attempt. The reversal during the session, while encouraging, merely closes the gap that was opened following the opening bell; follow-through from the afternoon rally would be required in order to confirm that the market is finding a low that investors can become comfortable with. Cyclical sectors continue to drag on market performance, while defensives outperform, which is certainly not a sign that investors are ready to take on risk. The framework for a rebound attempt is present, as long as investors can overcome this pessimistic sentiment. Sentiment on Tuesday, as gauged by the put-call ratio, ended bearish at 1.04. Sectors and Industries entering their period of seasonal strength: Seasonal charts of companies reporting earnings today: S&P 500 Index TSE Composite