Stock Market Outlook for June 24, 2024
Net assets on the Fed’s balance sheet has developed a declining path, no longer supportive of the upside momentum of the equity market.
*** 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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Fifth Third Bancorp (NASD:FITB) Seasonal Chart
Power Corp. Of Canada (TSE:POW.TO) Seasonal Chart
The Scotts Miracle-Gro Company (NYSE:SMG) Seasonal Chart
General Dynamics Corp. (NYSE:GD) Seasonal Chart
Franklin Electric Co., Inc. (NASD:FELE) Seasonal Chart
Modine Manufacturing Co. (NYSE:MOD) Seasonal Chart
ServisFirst Bancshares, Inc. (NYSE:SFBS) Seasonal Chart
Vanguard U.S. Multifactor ETF (AMEX:VFMF) Seasonal Chart
The Markets
Stocks edged mildly lower on Friday as the normal process of portfolio re-balancing at quarter-end continues. The S&P 500 Index closed lower by just shy of two-tenths of one percent amidst the highest volume session since the fourth quarter quadruple witching event in December. Momentum indicators continue to show early signs of rolling over within overbought territory as many of the winners from the first half of the year (eg. technology/Nvidia) are sold off in order to fund other segments of the market to which investment managers may be underweight. A digestion of overbought conditions is considered healthy as the market sets up for the strength attributed to the summer rally that gets underway in the week ahead. Major moving averages continue to underpin the rising path with the 50-day moving average (5232) providing the appropriate hurdle to peg as a stop to long allocations.
Today, in our Market Outlook to subscribers, we discuss the following:
- Weekly look at the large-cap benchmark
- Waning investor enthusiasm towards stocks
- The decline of liquidity from the Fed
- US Existing Home Sales
- US Petroleum supply and demand
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Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.86.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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