• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Stock Market’s Choppy Action Continues: Focus is on Jobs Report, Powell Speech
Stock

Stock Market’s Choppy Action Continues: Focus is on Jobs Report, Powell Speech

by June 28, 2024
by June 28, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The stock market’s theme this week seems to be indecision. This could continue until Chairman Powell speaks and the June payrolls number comes out next week. You’d think the May Personal Consumption Expenditures (PCE) report showing slowing inflation would boost equities, but while it technically did, it was brief.

Choppy Equities

If you look at a daily chart of the S&P 500 ($SPX), your first thought may be that the market didn’t do much to end the trading week. But if you pull up an intraday chart, you’ll see a lot of price movement. Initially, stocks rose, as did bond prices. But the rally was short; bonds quickly sold off, and equities stayed higher for over an hour before retreating. The S&P 500 ($SPX) touched a new record high, but the momentum quickly reversed. Equities remained flat for most of the trading day and sold off at the close.

This may be disappointing for bulls as the trading week, month, quarter, and first half of the year ends. But, overall, the year’s first half has been a great ride for equities. Maybe investors are getting nervous about the second half of the year, which may be why the stock market is stalling.

The S&P 500 hasn’t been doing much since last Thursday. It pulled back mainly due to NVIDIA’s selloff, and then it slowly tried to make its way back up (see chart below). But selling pressure came in quickly when it moved too much higher and took the index back down.

CHART 1. CHOPPY STOCK MARKET. The S&P 500 index has been moving sideways for over a week. Will next week present a different picture?Chart source: StockCharts.com. For educational purposes.

The S&P 500 has been moving within a relatively narrow range, and when it tried to break out of this range, it quickly returned. It feels as if bearish pressure quickly jumps in when things get a little too bullish.

Friday’s price action suggests that the market may have hit an exhaustion level, given that the bullish pressure couldn’t hold. The candlestick bar shows that bearish sentiment dominated the day’s trading. The Nasdaq Composite ($COMPQ) shows similar price action.

If you pull up the weekly chart of the S&P 500 (see below), it’s clear the week reflected indecision.

CHART 2. WEEKLY CHART OF S&P 500 INDEX. The week ends on a note of indecision.Chart source: StockCharts.com. For educational purposes.

Next week is a short trading week, but there are some key data points on deck. There’s the June PMI and the June jobs report. More importantly, we’ll hear from Fed Chair Jerome Powell. Will he say something that will make the stock market more decisive? We’ll have to wait and see, but, hopefully, something more exciting happens next week.

It’s All About Interest Rates

Investors continue to focus on interest rate cuts. When will that first rate cut happen? There’s speculation it could be as early as September, but that’s iffy given that we’re in an election year. It could be after the election, taking it to the November meeting.

The Fed has suggested one rate cut this year, which is what the stock market has priced in. Yet, there’s still uncertainty among investors. The 10-year Treasury yield ($TNX) closed higher despite a PCE that indicated inflation is slowly coming down. However, it isn’t at levels to be concerned about.

The daily chart of $TNX below shows that the 10-year yield is hitting a resistance level of its February and March highs. It’s also close to its 100-day simple moving average (SMA). It’ll take a lot for it to break above this level.

CHART 3. DAILY CHART OF 10-YEAR TREASURY YIELDS. While the 10-year yield rose, it’s at a resistance level.Chart source: StockCharts.com. For educational purposes.

The Bottom Line

Despite this week’s sideways move, the uptrend in the S&P 500 and Nasdaq Composite is still in play. Overall market volatility is still low, as reflected by the CBOE Volatility Index ($VIX). There’s a chance we could get some decisiveness creep into the market next week, but don’t be surprised if the choppiness continues. Next week could be slow. Happy Fourth of July!

End-of-Week Wrap-Up

S&P 500 closed down 0.08% for the week, at 5460.48; Dow Jones Industrial Average down 0.08% for the week at 39,118.86; Nasdaq Composite closed up 0.24% for the week, down 0.23% at 17,732.60.$VIX down 5.76% for the week closing at 12.44Best performing sector for the week: EnergyWorst performing sector for the week: UtilitiesTop 5 Large Cap SCTR stocks: NVIDIA (NVDA); Super Micro Computer, Inc. (SMCI); Vistra Energy (VST); Applovin Corp (APP); MicroStrategy Inc. (MSTR)

On the Radar Next Week

June ISM Manufacturing PMIMay JOLTs ReportJune US Jobs ReportFed Chair Powell SpeechJune FOMC Meeting Minutes

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Nvidia Stock: Why It’s Screaming a Spectacular Buy Signal
  • The BEST Way to Track Stock and ETF Performance
  • MarketCarpets Secrets: How to Spot Winning Stocks in Minutes!
  • A Wild Ride in the Market
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Can the S&P 500 Move Meaningfully Higher Without NVDA?
next post
Top 10 Stocks to Watch in July 2024!

You may also like

Bank Earnings Showdown: Emerging Trends You Need To Know

July 13, 2023

S&P 500, Dow Jones Hit All-Time Highs Again; Tech Stocks...

February 3, 2024

Does the MACD Histogram Hold the Secret to Anticipating Trend...

October 18, 2024

The One Chart to Watch as S&P 500 Makes New...

May 17, 2024

The Best Five Sector, #10

March 10, 2025

Trend (Re)Entry and You!

August 15, 2023

Introducing Cash Secured Puts: Know When To Fold Them

August 10, 2023

Recession Ahead? Sector Rotation Model Warns of Rising Risk

May 10, 2025

Sector Spotlight: Timeless Knowledge and Insights into Sector Rotation &...

December 13, 2023

Tech Stocks Face BIG TIME Thrashing as Apple Disappoints

August 4, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025
    • E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,763 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,449 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,428 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,306 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Riding Out the Storm in Less-Than-Ideal...

    September 28, 2023

    Bullish or Bearish? The Truth About...

    September 21, 2024

    Is this a Dead-Cat Bounce or...

    May 3, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here