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Stock Market Outlook for June 29, 2018

KBW Bank Index at a make or break point as investors digest the CCAR results.

 

Real Time Economic Calendar provided by Investing.com.

 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.   As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

Stocks Entering Period of Seasonal Strength Today:

Rogers Communications Inc.  (TSE:RCI.B) Seasonal Chart

Rogers Communications Inc. (TSE:RCI.B) Seasonal Chart

Alimentation Couche-Tard Inc (TSE:ATD.B) Seasonal Chart

Alimentation Couche-Tard Inc (TSE:ATD.B) Seasonal Chart

Belo Sun Mining (TSE:BSX) Seasonal Chart

Belo Sun Mining (TSE:BSX) Seasonal Chart

MBIA Inc.  (NYSE:MBI) Seasonal Chart

MBIA Inc. (NYSE:MBI) Seasonal Chart

Great Plains Energy Incorporated  (NYSE:GXP) Seasonal Chart

Great Plains Energy Incorporated (NYSE:GXP) Seasonal Chart

Educational Development Corp. (NASD:EDUC) Seasonal Chart

Educational Development Corp. (NASD:EDUC) Seasonal Chart

Walgreens Boots Alliance, Inc. (NYSE:WBA) Seasonal Chart

Walgreens Boots Alliance, Inc. (NYSE:WBA) Seasonal Chart

Molson Coors Brewing Company  (NYSE:TAP) Seasonal Chart

Molson Coors Brewing Company (NYSE:TAP) Seasonal Chart

 

 

The Markets

Stocks rebounded on Thursday as investors reloaded their bets in technology and consumer discretionary shares following weakness over the past week and a half.  Financial shares were also on the rebound as investors waited for results of the Fed’s Comprehensive Capital Analysis and Review, approving the dividend and buyback plans of the largest banks in the US.  Announcements of share buybacks and dividend hikes following the results were fast and furious in the post-market session, giving lift to stocks in the KBW Banking Index.  The benchmark continues to trade below its 200-day moving average, a level broken in just the past week.  Horizontal support around $104 is also under threat.  The benchmark is at a make or break point, therefore the reaction to these results in the days ahead will be pivotal.  Seasonally, the bank index tends to gain into the middle of July, then resumes the negative average trend that began in May.

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KBW Bank Index Seasonal Chart

$BKX Relative to the S&P 500
$BKX Relative to the S&P 500

$BKX Monthly Averages

The rebound in equity prices on the day managed to pull the S&P 500 Index back from the edge of psychological resistance at 2700.  Horizontal resistance at 2743 remains overhead.  A short-term positive momentum divergence with respect to MACD and RSI on the hourly chart of the large-cap benchmark suggests waning selling pressures, potentially setting the stage for the summer rally period that spans the weeks ahead.

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Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.32.

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Sectors and Industries entering their period of seasonal strength:

Wheat Futures (W) Seasonal Chart

FUTURE_W1 Relative to the S&P 500FUTURE_W1 Relative to Gold

FUTURE_W1 Monthly Averages

 

 

Seasonal charts of companies reporting earnings today:

Constellation Brands Inc (STZ) Seasonal Chart Greenbrier Companies, Inc. (The) (GBX) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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