Stock Market Outlook entering the Week of June 6th = Uptrend

• • ADX Directional Indicators: Uptrend
  • Price & Volume Action: Mixed
  • Elliott Wave Analysis: Uptrend

ANALYSIS
The stock market outlook shows an uptrend in place to start the week.

The S&P500 ($SPX) hasn’t made much progress since mid-April. Instead, the market has essentially consolidated the gains from the early March low. And as it has for the past 3 or 4 weeks, price sits ~2% above the 50-day and ~11% above the 200 day.

SPX Price Chart for the Week of June 06 2020

The ADX remains below 20, but the directional indicators remain bullish. And we picked up another 2 distribution days.

SPX Price Chart for the Week of June 06 2020

Elliott Wave continues to show an uptrend

COMMENTARY
The May jobs report was a bit below expectations, but that’s probably for the best. Any higher and we would have seen more hand-wringing about the Fed. Much lower and we would have had more hand-wringing about runaway valuations. Instead, we got something in the middle, and that means stay the current course.

So-called value and cyclical stocks have typically outperformed high-growth names when earnings accelerate out of a recession. And we’re seeing this play out in the relative performance of the DJIA and NASD.

Best to Your Week!