Stock Market Outlook for June 3, 2026
Growth sectors that normally perform well at this time of year moving in opposite directions: Technology higher, Communication Services lower.
*** 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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DraftKings Inc (NASD:DKNG) Seasonal Chart
NetApp Inc. (NASD:NTAP) Seasonal Chart
Paycom Software, Inc. (NYSE:PAYC) Seasonal Chart
ARK Web x.0 ETF (AMEX:ARKW) Seasonal Chart
Gen Digital Inc. (NASD:GEN) Seasonal Chart
Invesco S&P 500 Top 50 ETF (NYSE:XLG) Seasonal Chart
Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered is believed to be accurate, but is not guaranteed.
The Markets
Stocks meandered around the flatline as two growth sectors (technology and communication services) moved sharply in opposite directions on the day. The S&P 500 Index ended up by just over a tenth of one percent, starting to flatline just above 7600 (~7617). The lower limit of the narrowing rising span that that we have highlighted in recent days has been marginally breached around 7615, although a definitive breakdown has yet to be revealed. The conclusion to the narrowing rising span presents the prospect of seeing a retracement of a large portion of grind higher in the past couple of weeks. The lack of volume in the market since the March lows suggests that investors have been locked out of the market, conducive to this incremental grind higher, but it also creates vulnerability given that investors are not broadly engaged. While the character of the market remains where levels of resistance hold less weight than levels of support, there are certainly fractures around the periphery as breadth in the market narrows. Overbought readings continue to flash as the Relative Strength Index (RSI) moves further above 70. In the Seasonal Advantage Portfolio that we manage for clients at CastleMoore, we continue to hit new high watermarks and we have prepared for a more volatile/risk-off market framework (which admittedly has dampened our performance in the tech-led euphoria of recent weeks). The conflict/deal in Iran is the ongoing wildcard and the cues that we have been following that warranted moving towards a more defensive posture in risk assets have not gone away (and, arguably, our thesis was reconfirmed on Monday). Subscribers can view the themes in our chart books to either Accumulate or Avoid that we continue to gear portfolios towards.
Today, in our Market Outlook to subscribers, we discuss the following:
- The diverging directions of two growth sectors that normally perform well at this time of year
- US Job Openings and Labor Turnover Survey (JOLTS) and the investment implications within
- The downfall of the cryptocurrency market
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.73.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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