Technology drags the market lower to start the new month, but bearish positioning and sentiment is setting the market up for a spring-loaded rebound.
On the hourly chart, the large-cap benchmark (S&P 500 Index) continues to grind along previous declining trend-line resistance, which has provided points of short-term support through the back half of May. The benchmark is attempting to overcome short-term oversold levels from the end of May as bearish momentum hints of exhaustion. Bearish sentiment has reached extremes, as has positioning, in recent days, and while that is not necessarily a trigger for a countervailing move, it does suggest that the market is spring-loaded, poised to snap-back should a positive headline fuel an unwind of the bearish consensus bet. The month of June is notorious for countervailing moves as the second quarter comes to a close.
You can read the entire report by downloading today’s Equity Clock report at the following Link. What you need to do is highlight the following URL, Right-Click on it, and choose Open Link in a New Window: … … http://www.equityclock.com/2019/06/03/stock-market-outlook-for-june-4-2019/
