S&P 500 Index has averaged a decline of 0.4% during the month of June, however, 60% of the time the month has been positive over the past two decades.

Stock Market Outlook for June 1, 2023

S&P 500 Index has averaged a decline of 0.4% during the month of June, however, 60% of the time the month has been positive over the past two decades.

Real Time Economic Calendar provided by Investing.com.

*** 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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United Dominion Realty Trust (NYSE:UDR) Seasonal Chart

Wintrust Financial Corp. (NASD:WTFC) Seasonal Chart

Hawkins Chemical, Inc. (NASD:HWKN) Seasonal Chart

Prothena Corp. (NASD:PRTA) Seasonal Chart

The Markets

Stocks drifted lower on Wednesday as investors monitored the vote on the US debt ceiling while they conducted end-of-month portfolio re-balancing trades. The S&P 500 Index closed down by six-tenths of one percent, ending back below the pivotal 4200 level that the broader market has been scrutinizing as a level of resistance. A short-term divergence between price and momentum over the past month and a half remains apparent, failing to confirm the new multi-month highs charted in recent days. Support remains apparent at the congestion of major moving averages between 4000 and 4100, a zone that continues to keep this grind higher in prices afloat. The sustainability of the recent strength is certainly in questionable given the lack of breadth, the ongoing degradation in macro economic fundamentals, and the lack-lustre seasonal tendencies (particularly for the month of June) and caution in risk (stocks), generally, remains prudent.

Today, in our Market Outlook to subscribers, we discuss the following:

Monthly look at the large-cap benchmark

A look ahead at the tendency for stocks in the month of June

Securities that have either gained or lost in every June over their trading history

Job Openings and Labor Turnover Survey (JOLTs)

Canada Gross Domestic Product (GDP)

Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for June 1

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Just released…

Our monthly report for June is out, providing you with all of the insight that you will require to navigate through the month(s) ahead.

Highlights in this report include:

Equity market tendencies in the month of June

Both the bond and equity markets are dominated by bears, but likely only one will be proven correct

Yield spreads providing fuel for the bearish narrative

Treasury bonds

Growth dominating

Pre-election year path for stocks and the potential to see a change of Presidential leadership should the economy enter recession before election day

Ongoing weakness in manufacturer sentiment at the time of year when producers in this segment should be the most optimistic

Employers showing a bias towards part-time employees as deteriorating economic conditions cloud their outlook

Downfall of manufacturing activity continues to screen negatively for Copper

Rare April decline in Existing Home Sales

The shift in momentum of loan activity

US Dollar

The first of the weakest two-week spans of the year in the equity market

Breadth remains poor

Our list of all segments of the market to either Accumulate or Avoid, along with relevant ETFs

Positioning for the months ahead

Sector Reviews and Ratings

Stocks that have Frequently Gained in the Month of June

Notable Stocks and ETFs Entering their Period of Strength in June

Look for this 96-page report in your inbox or via the archive at https://charts.equityclock.com/

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With the new month upon us and as we celebrate the release of our monthly report for June, today we release our screen of all of the stocks that have gained in every June over their trading history. While we at Equity Clock focus on a three-pronged approach (seasonal, technical, and fundamental analysis) to gain exposure to areas of the market that typically perform well over intermediate (2 to 6 months) timeframes, we know that stocks that have a 100% frequency of success for a particular month is generally of interest to those pursuing a seasonal investment strategy. Below are the results:

And how about those securities that have never gained in this sixth month of the year, here they are:

*Note: None of the results highlighted above have the 20 years of data that we like to see in order to accurately gauge the annual recurring, seasonal influences impacting an investment, therefore the reliability of the results should be questioned. We present the above list as an example of how our downloadable spreadsheet available to yearly subscribers can be filtered.

Sentiment on Wednesday, as gauged by the put-call ratio, ended bearish at 1.04.