Contact | RSS Feed

Stock Market Outlook for June 24, 2020


Cracks have emerged in the breadth of the market, once again raising concerns of a near-term pullback for stocks.

 

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:

Subscribers – Click on the relevant link to view the full profile. Not a subscriber? Signup here.

Community Bank Sys, Inc. (NYSE:CBU) Seasonal Chart

Community Bank Sys, Inc. (NYSE:CBU) Seasonal Chart

Credit Suisse Group (NYSE:CS) Seasonal Chart

Credit Suisse Group (NYSE:CS) Seasonal Chart

WSFS Financial Corp. (NASD:WSFS) Seasonal Chart

WSFS Financial Corp. (NASD:WSFS) Seasonal Chart

Palo Alto Networks Inc. (NYSE:PANW) Seasonal Chart

Palo Alto Networks Inc. (NYSE:PANW) Seasonal Chart

iShares Global Financials ETF (NYSE:IXG) Seasonal Chart

iShares Global Financials ETF (NYSE:IXG) Seasonal Chart

 

 

The Markets

Stocks closed higher for a second day as better than expected manufacturing and services data out of Europe helped to support the market.  The S&P 500 Index gained four-tenths of one percent, continuing to hold support at the 20-day moving average.  Once again, it was technology stocks leading the way, which helped propel the NASDAQ Composite to new record highs.  The trend stemming from the March low remains that of higher-highs and higher-lows and the outperformance versus the S&P 500 Index is indicative of the strong demand for this segment of the market.  Major moving averages are all pointing higher, supporting the positive bias across multiple timescales.  The benchmark has held predominantly above its 20-day moving average and, at this point, investors that missed out on the rally should wait for a more appropriate risk-reward entry point towards levels of intermediate support presented by levels around the 50-day moving average.  The benchmark is significantly stretched above long-term support at its 200-day moving average, which skews the risk-reward unfavourably for new entrants.  In the Seasonal Model Portfolio, we have indicated the optimal date to look to trim exposure to the NASDAQ and rotate towards other areas of the market.

image

image

Want to know which areas of the market to buy or sell?  Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market.  Subscribers can login and click on the relevant links to access.

A number of negative divergences have caught our eye following Tuesday’s positive session for stocks.  The percent of stocks in the S&P 500 Index trading above 50-day moving averages declined on Tuesday, continuing to roll over from one of the highest levels in decades.  The NYSE McClellan Summation Index is similarly rolling over from a significant peak.  The NYSE Cumulative Advance Decline Volume line peaked a couple of weeks ago and has since fallen.  As well, there are still a number of broad market benchmarks are showing signs of resistance below their 200-day moving averages, including the S&P 500 Equally Weighted Index.  Admittedly, cracks like these were observed at the start of May, which proved to be nothing, but the obvious concern of a near-term pullback for stocks is raised again.

image

image

image

image

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.77.

image

 

 

 

 

Seasonal charts of companies reporting earnings today:

KB Home Seasonal Chart BlackBerry Limited Seasonal Chart Novagold Resources Inc. Seasonal Chart Winnebago Industries, Inc. Seasonal Chart H. B. Fuller Company Seasonal Chart Patterson Companies, Inc. Seasonal Chart Quantum Corporation Seasonal Chart Sotherly Hotels Inc. Seasonal Chart

 

 

S&P 500 Index

image

image

 

 

TSE Composite

image

image

 

Sponsored By...
Seasonal Advantage Portfolio by CastleMoore

Comments are closed.