Craig Johnson’s

Stock Market Summary

Monday, June 6, 2016

  • Stocks rallied last week extending the string of weekly consecutive gains for the major market indices to three. The only exception being the Dow Jones Industrial Average, which has only been higher one week out of the last six. Friday’s decline for the Nasdaq Composite ended a seven day consecutive streak of gains.
  • A bullish sign for the market is the leadership being provided by the small capitalization stocks and the semiconductor sector during the past three weeks. Strength has returned to the healthcare sector and much of the technology sector. These growth sectors, coupled with the semiconductors and the small capitalization universe, are needed to propel stock prices higher from the earlier rally phase that was predominately driven by basic material and energy stocks.
  • Friday’s employment data was most likely weak enough to postpone an anticipated interest rate hike by the Federal Reserve in June to at least July or later. This weighs negatively on financial stocks, but is a boon to others.
  • The second quarter earnings season that has been the focus of attention the past few weeks has wound down. Traders and investors will now turn their attention back to the U.S. economy, interest rates, energy prices and global news.
  • The stock market as measured by the S&P 500 has solid support between 2040 – 2020. The market has found its footing numerous times in that range over the past eight weeks or so. Resistance lies at the 2100 – 2116 level. The all-time high of 2134.71 occurred in May of last year. The S&P 500 closed near 2100 on Friday.
  • The short, intermediate and long term trends are all higher.  

Sources:,,, Dow Jones News, Financial Times,, Investor's Business Daily,,, Thomson Reuters/First Call, U.S. Dept of Treasury, and individual company web sites and press releases.

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results.