Stock Market Outlook for June 23, 2022
Downside leadership is seen fading as the average summer rally period nears.
*** 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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Southwest Gas Corp. (NYSE:SWX) Seasonal Chart
Scotts Co. Cl A (NYSE:SMG) Seasonal Chart
Rollins, Inc. (NYSE:ROL) Seasonal Chart
Fidelity Low Volatility Factor ETF (AMEX:FDLO) Seasonal Chart
The Markets
Stocks see-sawed on Wednesday as traders weighed comments from Fed Chair Jerome Powell and digested another dip in the price of oil. The S&P 500 Index closed marginally down on the day, falling by just over one-tenth of one percent and ending almost precisely around the mid-point to the session’s range. The benchmark is sitting just above declining trendline support, now at 3700, which had been keeping the selloff this year orderly. Resistance around declining moving averages remains firmly intact. MACD is showing increasing signs of curling higher in what could amount to a positive momentum divergence compared with price, an indication of waning selling pressures and a precursor event to a shift of trend. A distribution pattern below 3800 is still assumed, something that still has a good chance of frustrating the bears and leading to the start of the summer rally for stocks that stretches into the month of July.
Today, in our Market Outlook to subscribers, we discuss the following:
- Segments of the market that led the downside momentum through the first half of the year have stopped falling
- Biotech
- A shift in the trends in one market may be foretelling of the shift in the trends of another
- Canada Consumer Price Index (CPI)
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bearish at 1.04.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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