Craig Johnson’s

Stock Market Summary

Friday, June 22, 2018

U.S. Stock Market (S&P 500 Index) Trends:
       ST - Higher/Neutral, IT - Higher, LT - Higher 
U.S. Stock Market (Nasdaq Composite) Trends:
       ST - Higher, IT - Higher, LT - Higher 
Short Term Trend (ST) – Weeks to months
Intermediate Term Trend (IT) – Months to full year (most important trend for us)
Long Term Trend (LT) – Years 
  • The S&P 500 has pulled back a bit more than 1.70% from intraday high to intraday low during the past seven trading days. During the same period the Nasdaq Composite declined about the same amount in three days’ time, but then broke to all-time highs on Wednesday.
  • The Russell 2000 remains the strongest of the major market indices recording an all-time high on Wednesday.
  • Intel and Micron Technology, two very large semiconductor companies, reported earnings this week. Results far exceeded estimates and they made it very clear to those who still had doubts that these businesses are no longer just cyclical, but are experiencing growth throughout the year. Semiconductor chips have become a part of nearly everything in our lives today and that is being reflected as the companies report earnings and very bright outlooks for the future.
  • Utilities and REITs are the only two sectors moving higher so far this week. Both have benefited from a slight decline in interest rates.
  • The Material and Industrial sectors have dropped sharply in the past four days and have declined slightly over 3%.
  • The minor pullback the stock market has experienced was quickly ignored by the small market capitalization area, technology and biotechnology groups. This has left the trends for all time periods pointing higher for the Nasdaq Composite.
  • Until the S&P 500 is able to move higher and clear near term resistance, the short term trend remains with a higher/neutral trend. The trends for the longer time frames are both higher. 

Sources:,, Dow Jones News,, Investor's Business Daily,,, Thomson Reuters/First Call, U.S. Dept of Treasury, individual company web sites and press releases.

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results.