Stock Market Outlook entering the Week of June 9th = Uptrend
ADX Directional Indicators: Uptrend
On Balance Volume Indicator: Uptrend
Institutional Activity (Price & Volume): Uptrend
ANALYSISThe stock market outlook shows an uptrend in place for U.S. equities.
The S&P500 ($SPX) climbed 1.3% last week to hit a new, all time high. The index closed ~3% above the 50-day moving average and ~8% above the 200-day moving average.
SPX Price & Volume Chart for the Week of June 09 2024
ADX flipped back to bullish on Wednesday, rejoining On Balance Volume and institutional activity showing uptrends.
S&P Sector Performance for Week 23 of 2024
Some sectors didn’t benefit from the indexes strong performance. While Technology ($XLK) led the way higher (+2.6%), rate sensitive sectors lost ground, with Utilities ($XLU) and Energy ($XLE) both dropping more than 3%.
Sector performance was a read-through from asset classes, with Oil leading to the downside. Bitcoin gained 2.3%, erasing the prior week’s loss.
Asset Class Performance for Week 23 of 2024
COMMENTARYDid you watch TheRoaringKitty webcast? No? Good.
Last week’s economic data was “conflicted”. On the one hand, April ISM manufacturing PMI fell unexpectedly, although employment grew. On the other hand, April ISM Services PMI rose dramatically, although employment contracted. The JOLTs number showed job openings declined in April, while May NFP had the highest job growth in 5 months.
This week we get May CPI and another Federal Reserve Rate decision (Wednesday), May PPI (Thursday), and a smattering of Treasury auctions throughout the week.
Best to Your Week!
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Sources: Bloomberg, CNBC, Federal Reserve Bank of St. Louis, Hedgeye, Stockcharts.com, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics
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