The first week of June 2016 was a short week for stocks thanks to Monday being the Memorial Holiday.
Historically the day after Memorial Day has been higher for stocks and that didn’t work out this year although the closing decline was slight.
The first day of June has also historically been higher for stocks and this year although the gain was slight, the markets did end positively. For the first week of June, the SPX ended basically flat.
SPX Stock Market Outlook – First Week of June 2016
The stock market outlook for the first week of June saw stocks continually retest the 2090 level. While this is not a support level for the index, it still managed to draw in buyers each day that the market dipped to 2090 and it did so, all four trading days.
The market opened the week on Tuesday after the Memorial Holiday at 2100.13. On Friday it closed at 2099.13 a change of just 1 point. Basically, flat. The trading range was also tight with the index holding the 2090 level every day. This made trading the stock market direction extremely simple all week for those investors using SPY put or call options through such strategies as the Trading For Pennies Strategy.
Momentum all week was steady and closed the week higher on Friday than it started the week of Monday.
Stock Market Outlook – SPX First Week Of June 2016 Action
Dow Jones Stock Market Outlook – First Week of June 2016
The Dow opened the week at 17,891.50 and closed the week at 17,807.06 for a loss on the week of 84.44 points or slightly less than half a percent.
Monday saw the Dow open at 17891.50 and close at 17,787.20. From there the week was primarily flat for the Dow Jones Index. However the Dow kept retesting the 17750 level and DIS so on all three days. Those trading through the Triple Leveraged ETF funds of SDOW and UDOW had an easy week, basically buying the UDOW at 17750 and selling it at 17800 each day and buying the SDOW at 17800 and selling it at 17750. Sideways markets can create some terrific profit opportunities for those investors who are actively trading. But even investors who want to do just one or two trades a day can benefit from using the Triple Leveraged ETF products like SDOW and UDOW as we saw this week.
By the end of the week the close was actually bearish for the Dow but downside still seems quite limited heading into the second week for the Dow.
Stock Market Outlook – Dow First Week of June 2016
NASDAQ Stock Market Outlook – First Week of June 2016
The NASDAQ was the only index to actually have a gain and it was extremely slight at just 4.04 points. The NASDAQ ended the week flat from Monday but is now trading well above the major moving averages for the second week.
Stock Market Outlook – NASDAQ First Week Of June 2016
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Stock Market Outlook – The Week Ahead For The Second Week of June 2016
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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