Over the past two decades, the S&P 500 Index has declined by an average of 0.2% in the month of June.
*** 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.
Super Simple Seasonal Portfolio
This content is exclusive to subscribers of EquityClock.com. Please Log In or Subscribe to proceed.
The Markets
Stocks ended positive to close out the last trading day of May as portfolio managers feverishly rebalanced their books into the final minutes of the Friday session. The S&P 500 Index closed with a gain of eight-tenths of one percent, ending higher after testing the rising 50-day moving average (5181) at the lows of the session. MACD remains on a fresh sell signal following the bearish crossover charted in the previous session, continuing to provide evidence of waning buying demand around recent record heights. The threat remains of a broader downturn beyond the mere 5% pullback that was recorded in April. A break below support at the April lows would present a downside target to levels around the 200-day moving average, now at 4773. Cracks to the intermediate-term rising trend have developed and this is not the point to step in the way of the correction that has a good likelihood of playing out through the month ahead amidst the period of seasonal weakness that plays out ahead of the summer rally period in July. Topping patterns have become abundant across the market (see our weekly chart books) and a defensive tilt has become obvious, therefore it would take a significant positive catalyst to break the negative setup overhanging the market in the near-term. The strategy over the next month is to mitigate portfolios from downside volatility while seeking to increase exposure to risk again around the end of June once the end of quarter rebalancing period is complete and the positive tendency for stocks around the middle of the year begins.
This content is exclusive to subscribers of EquityClock.com. Please Log In or Subscribe to proceed.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
