Equity Clock

Stock Market Outlook for June 22, 2021

The list of downgrades in this week’s chart books is long, but there were a few upgrades.

 

 

 

*** 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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Rush Enterprises Inc. (NASD:RUSHA) Seasonal Chart

Washington Trust Bancorp, Inc. (NASD:WASH) Seasonal Chart

Opiant Pharmaceuticals, Inc. (NASD:OPNT) Seasonal Chart

Preformed Line Products Co. (NASD:PLPC) Seasonal Chart

 

 

The Markets

Stocks bounced back from last week’s selloff as the S&P 500 Index retook levels back within its intermediate rising trend channel.  The S&P 500 Index closed higher by 1.40% on Monday, led by core cyclical sectors of energy, financials, industrials, and materials.  The benchmark has retaken levels back above major moving averages at the 20 and 50-day, redefining these levels as points of support.  Follow through below the lower limit of the rising intermediate-term trend-channel that was cracked at the end of last week was unable to be achieved, placing the ball back in the court of the bulls, who are seeking to maintain this rising path of higher-highs and higher-lows.  The benchmark closed around previous resistance at 4225 and MACD remains on a sell signal, suggesting that this market is still not without downside risks, despite Monday’s snap-back.  One more week remains in the average portfolio rebalancing period, but with this quarter’s winners already taken down in a big way through the past week, it is difficult to ascertain the negativity that could materialize in these final few days of the month, quarter, and first half of the year.  Looking to take advantage of the weakness to ratchet up risk exposure for the summer rally period continues to look like the appropriate course of action.

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

• The list of downgrades in this week’s chart books and the few upgrades
• Average tendency for the equity market during the second year of a recovery
• The short-term gyrations for stocks ahead and speculation of the intermediate-term trend: How to play the weeks and months ahead

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Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.80.

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

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