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Stock Market Outlook for May 9, 2022


The negative trends that are being established are broad and they are global. 

 

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:

Subscribers – Click on the relevant link to view the full profile. Not a subscriber? Signup here.

Factset Research Sys, Inc. (NYSE:FDS) Seasonal Chart

Intuitive Surgical, Inc. (NASD:ISRG) Seasonal Chart

CTS Corp. (NYSE:CTS) Seasonal Chart

Crawford & Co. (NYSE:CRD/A) Seasonal Chart

Independence Realty Trust, Inc. (NYSE:IRT) Seasonal Chart

Vista Outdoor Inc. (NYSE:VSTO) Seasonal Chart

iShares U.S. Pharmaceuticals ETF (NYSE:IHE) Seasonal Chart

iShares S&P 500 Growth ETF (NYSE:IVW) Seasonal Chart

Fidelity Nasdaq Composite Index Tracking Stock (NASD:ONEQ) Seasonal Chart

iShares 20+ Year Treasury Bond ETF (NASD:TLT) Seasonal Chart

BCE, Inc. (NYSE:BCE) Seasonal Chart

Eversource Energy (NYSE:ES) Seasonal Chart

 

 

 

The Markets

Stocks sold off following a better than expected read of payroll growth for April, which market participants viewed as reason for the Fed to continue to be aggressive in normalizing monetary policy.  The S&P 500 Index fell by 0.57%, reaching back towards the lows of the year and continuing to make progress below the neckline to the massive head-and-shoulders topping pattern.  Downside risks suggested of the setup are all the way down to 3780, which, if achieved, would represent an approximately 38.2% Fibonacci retracement of the entire pandemic rally in stocks.  Currently, the benchmark has found itself in a short-term range between 4070 and 4300, which will warrant further monitoring in the days ahead given that the lower limit has been tested twice this week and both instances saw buyers step in.  A possible path for the benchmark through the month of May is a short-term consolidation in this range, below the neckline to the topping setup, before resolving lower.  Momentum indicators, along with major moving averages, continue to point lower, characteristic of a bearish trend over multiple timeframes.  For now, as long as levels of resistance continue to outweigh levels of support, there is very little incentive to be aggressive in this market.  We could still realize some ugly days in the market in order to provide the “flush” that would warrant jumping head first into risk again within portfolios.

Today, in our Market Outlook to subscribers, we discuss the following:

  • Weekly look at the large-cap benchmark
  • A broad basket of equity benchmarks failed to retake levels of support last week
  • US Nonfarm Payrolls
  • Canadian Labour Force Survey
  • Investor sentiment

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Sentiment on Friday, as gauged by the put-call ratio, ended bearish at 1.15. 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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