Weekend Stock Market Outlook – June 06 2021

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.

Technical analysis of daily SPX prices

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.

Technical analysis of daily SPX prices

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!

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