We’re now three trading days into the month of June, and the market is pretty much right where it ended May ... Near the highs, but with faltering momentum.
Even though there haven't been big end-of-day gains or losses yet, the action has been noteworthy.
As you can see in the intraday chart of the S&P 500 below, there has been a big sell-off each morning, just after the open of trading. However, that has been followed by steady buying throughout the trading day - all the way into the close.
Early-morning selling followed by steady intraday buying, especially into the close, is seen as a bullish signal for the market.
Moreover, there was intraday buying, even on Friday, as the market digested a horrible jobs report at 8:30 AM ET. Nonetheless, buyers stepped in by 10:30.
S&P 500 Sector Breadth Levels
In addition, below is a look at S&P 500 sector breadth levels (as measured by the percentage of stocks trading above their 50-day moving averages).
According to Bespoke, 65% of stocks in the S&P 500 are trading above their 50-days (which is a solid reading).
Sectors where breadth is strongest include Utilities, Energy, Financials and Health Care.
While the Financial sector still has a stronger reading than the S&P 500 as a whole, its breadth was much stronger prior to Friday's jobs number. The weak employment number pushed rate-hike estimates further out, and Financials had been performing well due to increased hawkishness from the Fed prior to today.
