Stock Market Outlook - July 23, 2014
Tech Talk | Jul 23, 2014 04:03AM ET
- Weekly Crude Inventories will be released at 10:30am.
- Bank of England Minutes will be released at 4:30am EST.
- Canadian Retail Sales for May will be released at 8:30am EST. The market expects a month-over-month increase of 0.5% versus an increase of 1.1% previous.
- Euro-Zone Flash Consumer Confidence for July will be released at 10:00am EST. The market expects –7.4, consistent with the previous report.
- Japan Merchandise Trade for June will be released at 7:50pm EST. The market expects a deficit of ¥688B versus a deficit of ¥909.0B previous.
- Japan Flash Manufacturing PMI for July will be released at 9:35pm EST. The market expects 51.9 versus 51.1 previous.
- China Flash Manufacturing PMI for July will be released at 9:45pm EST. The market expects 51.2 versus 50.8 previous.
Stocks pushed higher on Tuesday as investors continue to brush off international concerns and instead focus on strong earnings and economic data in the US. The S&P 500 Index briefly charted a new all-time intraday high, however, resistance around 1985 remained very much intact, preventing the benchmark from advancing beyond the half of a percent return on the day. The hourly chart of the large-cap index continues to show a narrowing trading range, from which a breakout appears imminent. The pattern resembles that of an ascending triangle, typically a continuation pattern, which could suggest an upside move beyond resistance. Negative momentum divergences with respect to MACD and RSI have become apparent as stocks struggle to close above the early July peak.
One potential headwind for the equity market is the emerging strength in the US Dollar Index. The US Dollar Index broke above declining trendline resistance back in May and is now testing resistance at the June high of 81. The currency benchmark has charted what appears to be a head-and-shoulders bottoming pattern, which implies upside potential all the way to 83 should the neckline around 81 be broken. Strength in the US currency often acts as a negative influence on equity and commodity prices valued in the domestic currency as the cost to purchase becomes more expensive to outsiders. Seasonally, the US dollar typically declines through to October, however, anticipation of a rate increase by the Fed and weakness in the Euro has supported the US currency in recent weeks.
Get The News You Want
Seasonal charts of companies reporting earnings today:
Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.92.
S&P 500 Index
Horizons Seasonal Rotation ETF (TO:HAC)
- Closing Market Value: $14.71 (up 0.20%)
- Closing NAV/Unit: $14.69 (down 0.13%)
Performance*
| 2014 Year-to-Date | Since Inception (Nov 19, 2009) | |
| HAC.TO | 2.73% | 46.9% |
* performance calculated on Closing NAV/Unit as provided by custodian
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.