Analysis-US stock market technicals suggest possible rebound as earnings, CPI loom

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Matt Dusk sings Sinatra in Halifax/PEI/Moncton | SaltWireNEW YORK - Technical and seasonal indicators that investors use to gauge the U.S. stock market's health show it may be time to buy, though upcoming inflation data and the third-quarter earnings season could still throw Wall Street a curveball.

Investors are also worried about the Federal Reserve interest rate trajectory, which could be influenced by Thursday’s U.S. consumer price report. Another wild card could be third-quarter earnings season which kicks off on Friday and should help show whether companies can justify valuations that have swelled this year.

The S&P 500's ability to rise in the aftermath of those events"leads me to believe that a lot of negative information had been priced into the market," Clissold said. Those two factors have occurred together only 14 times since 1990. In 12 of those times the S&P 500 was higher six months later, Turnquist said.

Market sentiment has turned more negative with the latest stock slide, with 41.6% of investors bearish and 30.1% bullish in the latest American Association of Individual Investors weekly survey.

 

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Analysis-US stock market technicals suggest possible rebound as earnings, CPI loomTechnical and seasonal indicators that investors use to gauge the U.S. stock market's health show it may be time to buy, though upcoming inflation data and...
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