Weekend Market Outlook: Seasonality May Sting Bulls

David Settle

The S&P 500 is in the midst of a bounce but the broad stock index is still showing signs of a maturing intermediate trend – especially considering seasonality and weak weekly Heikin-Ashi candles.

In this week’s “Weekend Market Outlook” we will discuss key indicators and trends, the week ahead for stocks, as well as current trading setups for the market indices, sectors and stocks. Below is a recap of what’s in the video.

Market Outlook Video (September 15):

–  Bullish intermediate confirmation signals on Dow Industrials and NASDAQ suggest potential for more up days early next week but do not expect significant new highs. S&P 500 already hitting Fibonacci resistance areas in short term using Fibonacci Extensions.

–  S&P in long-term environment of growing bullish momentum rather than decreasing momentum the last time Emerging Markets showed strong relative weakness.

–  Economic Indicators still show strength with strong sentiment, higher GDP estimates and high rate hike expectations.

–  Trade matters are still relevant. China down 25% from its January peak. EM and DM showing basing patterns with opportunities for value

–  Interest rates trend impacting Utilities and Real Estate negatively. New rotations transitioning leadership from Technology/Discretionary into Industrials

–  Trade idea in bullish Industrial sector that has bullish trend but is running into resistance. Trade shoots for profit from pullback from resistance but allows for small gain in case of breakout.

 

Twitter:  @davidsettle42  and  @Market_Scholars

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