S&P 500 pullback coming soon?

Index & Sector performance 6/6/14

The Market:

Yet again the Russell 2000 led in today’s trading as all 4 broad indices from the WSC Scoreboard closed higher.  Also after spending much of 2014 in the red, the Russell 2000 (IWM) is now ever so slightly higher on the year.

Healthcare (XLV) and Utilities (XLU) were the lone laggards in the individual sectors while Energy (XLE), Industrials (XLI), and Transportation (IYT) were the notable leaders.  Taking a peak further at the Industrials, which were the overall leader, we see Fluor (FLR) posted a 2.77% gain today following up on a strong day yesterday.  FLR looks to have potential to go even higher and is a name to watch on an orderly pullback from this recent strong 3 week rally.

Today in Economic data we saw Non-Farm Employment come in roughly as expected posting a 217K while the unemployment rate ticked lower to 6.3% when 6.4% was expected.  Next week will not contain as much economic news as this week but will contain Retail Sales, Unemployment Claims, PPI, and University of Michigan Consumer Sentiment.  Below is a recap of this week’s reported data.

An interesting technical set-up where the S&P 500 closed the week outside of its (20,2,-2) Bollinger Bands.  This comes as many on Wall Street are clamoring the index is in overbought territory and needs a pullback.  While not a perfect signal, as we can see from the chart, it is not uncommon to see a reversal or muted performance for multiple weeks.  Weekly Chart below of the S&P 500 (SPY).

Economic Calendar week of 6/2/14

SPY Weekly Chart

Reporting EPS 6/9/14 Pre-Market:

There are only two names we show reporting Monday 6/9/14 pre-market; Comverse, Inc. (-$0.06 est) and Layne Christensen Co. (LAYN) (-$0.34).

Analyst Comments:

Upgrades 6/6/14

Downgrades 6/6/14

Initiations 6/6/14

Price Target Changes 6/6/14