S&P 500 Index: Break of rising trendline support. Real Time Economic Calendar provided by Investing.com. **NEW** As part of the ongoing process to offer new and up-to-date information regarding seasonal and technical investing, we are adding a section to the daily reports that details the stocks that are entering their period of seasonal strength, based on average historical start dates. 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: Wipro Ltd. (NYSE:WIT) Seasonal Chart Infinity Pharmaceuticals, Inc. (NASD:INFI) Seasonal Chart IntercontinentalExchange Group (NYSE:ICE) Seasonal Chart HudBay Minerals Inc. (TSE:HBM) Seasonal Chart Mag Silver (TSE:MAG) Seasonal Chart salesforce.com, inc. (NYSE:CRM) Seasonal Chart NutriSystem, Inc. (NASD:NTRI) Seasonal Chart Paychex, Inc. (NASDAQ:PAYX) Seasonal Chart Upcoming BNN Appearance: I will be on BNN’s Market Call Tonight at 5:30pm ET this Friday, August 18th taking your calls on Technical Analysis and Seasonal Investing. CALL TOLL-FREE 1-855-326-6266, EMAIL marketcall@bnn.ca, or TWEET @MarketCall Be sure to send in your video questions for priority response on air. The Markets Stocks plunged on Thursday as concerns mount over the stability of the Trump administration and its ability to pass business-friendly legislation. The S&P 500 turned lower from resistance around last week’s breakdown point, confirming that the volatility and period of risk aversion that is common for this time of year is not over. The S&P 500 Index lost 1.54%, moving back below its previous rising trendline support. Resistance at the 20-day moving average, which is starting to roll over, is apparent with Thursday’s selloff. Following a number of months where the benchmark showed more signs of support than resistance, the tide may be changing. With the benchmark below the 50-day moving average, the next major test of moving average support may be at the 100-day, now at 2416. Horizontal support at 2400 is a major line in the sand. Seasonal volatility in equity markets continues, on average, through the month ahead. On the economic front, another report for the month of July raises questions as to the effectiveness of the seasonal adjustment factor accounting for the Independence Day holiday. The headline print for Industrial Production indicated an increase of 0.2% for this first month of the second half of the year, missing the consensus analyst estimate that called for a 0.3% rise. The manufacturing component showed a contraction for the month, down by 0.1%, again missing estimates calling for a 0.2% gain. Stripping out the seasonal adjustment, industrial production was actually lower by 1.3%, much better than the average decline for the month of July of 3.8%. The manufacturing component, meanwhile, was was lower by 3.4%, also better than the average decline for the month of 5.2%. The year-to-date change for each are now firmly above average following a below average first half of the year, which was weighed down by below average trends in utility and motor vehicle production. While residential utility and motor vehicle production continues to lag seasonal norms, the core constituents in the report are performing quite well, particularly with respect to durable goods, which overcame the summer slowdown period in an above average position, setting up well for the back half of the year. Industrial production generally dips in the month of July as factories close for a number of reasons, such as retooling. The dip is typically erased by the end of September as production ramps up once again for goods to be delivered before the end of the year. Regional manufacturing reports, which are largely sentiment based, have been suggesting strength in manufacturing for some time and now the hard data is starting to reflect this strength. Lacklustre commodity prices remain the hindrance on the non-durable side, but given the low base of some commodities out there, the upside potential is arguably greater than the downside risks. Industrial Production: Total Seasonal Chart Statscan also released their manufacturing gauge, this time for the month of June. The headline print for Canada Manufacturing sales indicated a decline of 1.8% in June, missing the consensus analyst estimate calling for a 1.2% decline. Stripping out the seasonal adjustments, the sales of goods manufactured actually declined by 2.7%, diverging from the 0.4% gain that is average for this last month of the second quarter. Despite the downbeat result, the year-to-date trend remains approximately inline with the seasonal trend, gyrating back and forth in recent months, reflective of the volatility in commodity prices. Much like the US, strength is centered in the durable goods space, which is trending above historical averages, while non-durable goods lag. But with goods being produced on the rise, there are questions as to how robust buying demand is. Inventories are gaining well above average and unfilled orders are declining from the peak charted in April, not exactly an encouraging revelation pertaining to the strength in the manufacturing economy in Canada moving forward. The pronounced rise in the Canadian dollar that began in June is no doubt weighing on the factory sector north of the border, potentially mitigating the strength in July that US factories benefitted from. Sales of goods manufactured (shipments) Seasonal Chart Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.07. Seasonal charts of companies reporting earnings today: S&P 500 Index TSE Composite