Stock Market Outlook: October 18, 2013
Tech Talk | Oct 18, 2013 06:42AM ET
Upcoming US Events for Today:
- Leading Indicators for September will be released at 10:00am. The market expects a month-over-month increase of 0.6% versus an increase of 0.7% previous.
Upcoming International Events for Today:
- Canadian CPI for September will be released at 8:30am EST. The market expects a year-over-year increase of 1.0% versus an increase of 1.1% previous.
The Markets
Stocks continued to push higher on Thursday as investors that were handcuffed by the threat of US default regained exposure to equity positions. The S&P 500 pushed closer to trendline resistance (see chart in the S&P 500 section below), while the TSX amounted a breakout above significant resistance around 12,900 as Gold caught a bid. With resistance on the TSX now broken and significant momentum indicators pointing higher, a positive trend is suggested with the six month positive seasonal trend directly ahead. Average return for the Canadian benchmark reaches 9.9% between October 28th and June 5th.
The day had an overwhelming risk-off tone as defensive equity sectors (consumer staples, health care, and utilities) outperformed broad market benchmarks. Strength in the price of bonds and gold reiterated the risk averse trading activity as investors struggle to find value in a overbought market. Resistance for the major equity indices directly overhead increases the likelihood of a near-term pullback before the period of seasonal strength for stocks begins at the end of this month.
Get The News You Want
TSE Composite:
Horizons Seasonal Rotation ETF (TSX:HAC)
- Closing Market Value: $13.54 (unchanged)
- Closing NAV/Unit: $13.56 (up 0.21%)
* performance calculated on Closing NAV/Unit as provided by custodian
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