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Stock Market Outlook for June 22, 2020


Cracks in the upward trajectory for stocks have formed.

 

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:

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Target Corp. (NYSE:TGT) Seasonal Chart

Target Corp. (NYSE:TGT) Seasonal Chart

Richelieu Hardware Ltd. (TSE:RCH.TO) Seasonal Chart

Richelieu Hardware Ltd. (TSE:RCH.TO) Seasonal Chart

Dime Community Bancshares, Inc. (NASD:DCOM) Seasonal Chart

Dime Community Bancshares, Inc. (NASD:DCOM) Seasonal Chart

Waterstone Financial (NASD:WSBF) Seasonal Chart

Waterstone Financial (NASD:WSBF) Seasonal Chart

Achillion Pharmaceuticals Inc. (NASD:ACHN) Seasonal Chart

Achillion Pharmaceuticals Inc. (NASD:ACHN) Seasonal Chart

Sprott Physical Silver Trust ETF (NYSE:PSLV) Seasonal Chart

Sprott Physical Silver Trust ETF (NYSE:PSLV) Seasonal Chart

ETFS Physical Silver Shares (NYSE:SIVR) Seasonal Chart

ETFS Physical Silver Shares (NYSE:SIVR) Seasonal Chart

Inter Pipeline Ltd. (TSE:IPL.TO) Seasonal Chart

Inter Pipeline Ltd. (TSE:IPL.TO) Seasonal Chart

 

 

The Markets

Stocks closed lower on Friday following wild swings on either side of the flatline intraday.  The S&P 500 Index closed down by 0.56%, continuing to maintain support at its rising 20-day moving average.  Horizontal resistance at 3130 remains the defined hurdle overhead.  Momentum indicators on this daily look remain on sell signals following the abrupt decline recorded in the prior week.

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For the week, the large-cap benchmark was higher by 1.86%, remaining supported at its 50-week moving average.  But despite the week’s gain, the weekly chart still appears threatening following the decline in the prior week.  The prior week’s reversal was realized just below resistance at the open gap around 3300, a logical level for the benchmark to at least consolidate recent gains.  Following a number of weeks where upside progress was being made, cracks in that trajectory have been formed.  The past week’s open was lower than the body of the prior week’s range and the close was firmly below the prior week’s open.  These are still merely hints that a downside shift has begun.

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On the economic front, Statscan reported retail sales for April.  The headline print indicated that sales in Canada fell by 26.4% in April, which is much weaker than the consensus analyst estimate that called for a decline of 15.0%.  The year-over-year change now sits a –32.5%, down from –8.4% reported previous.  Stripping out the seasonal adjustments, retail trade in this country actually fell by 21.4% in this spring month, which is a significant negative divergence compared to the 5.2% increase that is average for this time of year.  The year-to-date change is down by 37.0%, which is 25.6% below the seasonal average trend.  Motor vehicles, furniture, gasoline, and clothing store sales are weighing on the aggregate result, while grocery store sales are still holding above their average path for the year.  Subscribers can login to view the seasonal charts for this report at https://charts.equityclock.com/canada-retail-trade-sales

Retail trade Seasonal Chart

Sentiment on Friday, as gauged by the put-call ratio, ended slightly bullish at 0.91.

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Seasonal charts of companies reporting earnings today:

Contango Oil & Gas Company Seasonal Chart W&T Offshore, Inc. Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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