chart: Seasonality & the 200DMA

By EquityClock.com
For the full article and many Seasonality charts of stocks entering seasonal strength today, go to the following link       http://bit.ly/1jyP3DZ

The Markets
Stocks ended mixed on Monday with little presented to move equities one way or the other.  The S&P 500 Index gained a mere three basis points, holding below critical resistance presented around 2040.  Looking at the hourly chart of the large-cap index, momentum indicators, including stochastics and MACD, are rolling over, suggesting a retracement of the recent gains may be on the horizon.  Typically, by this point in the earnings season, investors will have gained a reasonable understanding of the strength of corporate America and subsequently pull the rug out from below stocks after driving them higher into the early releases.  Between the close of October 21st and the close of October 27th, the S&P 500 Index has declined by 0.78%, on average, with losses recorded in 11 of the past 20 periods.  This brief pullback in the broad market clears way for the positive six month seasonal trend that starts on October 28th, on average.  As reported yesterday, the key hurdle overhead remains the 200-day moving average and the risks that are present when the best six months of the year starts below this long-term level.  It may take a catalyst to achieve this significant break; whether the market can obtain this catalyst is anybody’s guess.

Courtesy of EquityClock.com & StockCharts.com

Courtesy of EquityClock.com

NOTE - both years ending in a "5" had small losses


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This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results