Stock Market Outlook for June 8, 2023
While the US Dollar remains on the rise following its double-bottom low charted in the past month, the surprise rate increase from the Bank of Canada is similarly keeping the Canadian Dollar supported, threatening a shift of the long-term trend ahead.
*** 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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Masimo Corp. (NASD:MASI) Seasonal Chart
BMO Mid-Term US IG Corporate Bond Index ETF (TSE:ZIC.TO) Seasonal Chart
BMO Long Provincial Bond Index ETF (TSE:ZPL.TO) Seasonal Chart
Fidelity Corporate Bond ETF (AMEX:FCOR) Seasonal Chart
Invesco 1-30 Laddered Treasury ETF (NASD:PLW) Seasonal Chart
The Markets
Stocks were generally mixed on Wednesday as the pendulum shifts away from some of this year’s winners (growth/technology) and towards many of the laggards. The growth heavy S&P 500 Index closed with a loss of nearly four-tenths of one percent, showing ongoing pause at the 61.8% Fibonacci retracement zone of last year’s decline at 4300. The benchmark is maintaining levels above the recently broken band of resistance between 4100 and 4200 and support at the congestion of major moving averages between 4000 and 4100 remains pointed higher below. The positivity surrounding the Memorial Day holiday, leading into the start of June, is now past and the mean-reversion phase that we had been forecasting is now firmly entrenched, a phenomenon that typically progresses through to the last few days of the second quarter at the end of this month.
Today, in our Market Outlook to subscribers, we discuss the following:
- Rollover of developed international equities
- Select countries benefiting from the current rotation
- The US Dollar Index and Canadian Dollar
- Weekly US Petroleum Status and the path of the price of oil
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for June 8
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.89.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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