Notice: The weekend report is provided for informational purposes only and is not intended as a stock-picking service. The charts and information provided are intended to aid research and analysis and should only be used as indicators. They should not be considered as a direct trigger to buy or sell any security. The creator assumes no responsibility for any actions readers take and strongly advises each individual to fully understand the risks and potential consequences before making any investment decisions. Please note that the charts shared are not intended as signals to buy or sell but as a tool to add to your watchlist and analyze according to your trading ability. Remember that not all charts will result in buy or sell actions at any time.
This is just a friendly reminder that it’s essential to monitor the Daily Setups and Workspace scan results, which can provide insights into potential future additions and help you stay ahead of the game.
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Sample Trading System
The following trading system is presented as an educational example and should not be interpreted as financial advice. Past performance does not guarantee future results, and trading involves inherent risks. Please consult with a qualified financial advisor before implementing any trading strategies.
SYS Daily Report – Weekend Edition
Market Rally Faces Triple Witching Volatility
The stock market’s rally showed minimal gains this week, with the S&P 500 and Nasdaq Composite achieving fresh all-time highs as recently as Thursday morning. However, the momentum was weak towards the end of the week, with prices pulling back on Thursday and Friday.
S&P 500 – Weekly Chart
Nasdaq – Weekly Chart
Friday’s session was particularly painful as it coincided with a triple witching day and the rebalancing of ETFs, notably the XLK ETF. Triple witching, when stock options, stock index futures, and stock index options all expire simultaneously, led to heightened volatility.
Next week, I plan to observe how the market reacts following Friday’s volatility before drawing any conclusions, even as many of my peers rush to make predictions. The economic calendar is busy with several key data releases. On Tuesday, the Conference Board will release its latest consumer confidence reading. Wednesday will see the release of new home sales figures for May, while Thursday will bring durable goods orders data and a revised first-quarter GDP reading. The week will culminate on Friday with the release of May’s Personal Consumption Expenditures price index data from the Department of Commerce.
Despite the pullback in the S&P 500 and Nasdaq on Thursday and Friday, the overall S&P sector chart remains robust, with only three sectors closing negatively last week. The Nasdaq and S&P 500 are just below their all-time highs, with the S&P showing resilience on the weekly chart, while the Nasdaq appears to require more of a pullback. There is no clear signal from the breadth system yet, although the percentage of Nasdaq stocks above their 200-day moving average has risen back above its moving average. By the end of the day on both the New York Stock Exchange and the Nasdaq, advancing stocks narrowly outnumbered declining stocks.
What Worked Last Week
The Red-Light/Green-Light Breadth System
Next week will provide more insights into whether the rally is broadening or if the market will continue to rely on a few outperforming stocks. Meanwhile, scanner results suggest some promise, as many ETFs appear favorable this weekend. The XLC communications ETF, the XLV healthcare ETF, and the XLY discretionary ETF, highlighted below, may be indicating a broadening rally with their bullish setups.
XLC – Communication Services Select Sector SPDR Fund
The Communication Services Select Sector SPDR Fund ETF is attempting to trend higher, emerging from a bull flag retest of its recent breakout.
LINK TO CHART – https://schrts.co/bqsZBFSR
XLV – Health Care Select Sector SPDR Fund
The Health Care Select Sector SPDR Fund ETF appears to be positioned just below the upper trendline of its consolidation/continuation pattern. Monitor for any potential breakout signals.
LINK TO CHART – https://schrts.co/JTauxWiZ
XLY – Consumer Discretionary Select Sector SPDR Fund
The Consumer Discretionary Select Sector SPDR Fund ETF appears to be attempting a breakout from a significant, multi-month consolidation area.
LINK TO CHART – https://schrts.co/dQVtuxnn
In terms of weekly performance, the Dow Jones Industrial Average led the indexes with a modest 1.45% advance, the S&P 500 gained 0.6%, the Nasdaq Composite rose less than one point, and the small-cap Russell 2000 climbed 0.8%. As we transition to a closer look at the chart analysis, the S&P 500 is experiencing a slight pullback. The setup remains straightforward: monitor how the price action responds when it meets the 21-day exponential moving average or the recent breakout line. Before making predictions, it’s crucial to see if the price can successfully retest these areas. If these levels fail to hold, the 50-day moving average becomes the next area to watch for a retest.
S&P 500 – Daily Chart
The Nasdaq is experiencing a slight pullback, similar to the S&P 500. The setup remains straightforward: monitor how the price action responds when it meets the 21-day exponential moving average or the recent breakout line. Before making predictions, it’s crucial to see if the price can successfully retest these areas. If these levels fail to hold, the 50-day moving average becomes the next area to watch for a retest.
Nasdaq – Daily Chart
One can draw as many lines on the Dow chart as they like to make predictions, but the price action is clear. The Dow is consolidating sideways between horizontal lines and an upward-sloping 200-day moving average. The setup is straightforward: a breakout above the upper trendline of this consolidation would be bullish, indicating a continuation of the uptrend. Conversely, a failure to hold above the 200-day moving average would be bearish, negating any bullish scenario. Currently, the price is beginning to curl above a key resistance area we’ve been monitoring, which supports our analysis of a potential rotation. Keep an eye on whether the price can advance toward the upper trendline, potentially leading to a breakout.
Dow Jones Industrial Average – Daily Chart
One can also draw as many lines on the Russell chart as they want to make predictions, but the price action is clear. It is consolidating sideways between horizontal lines and an upward-sloping 200-day moving average. The setup is straightforward: a breakout above the upper trendline of this consolidation would be bullish, suggesting a continuation of the uptrend. Conversely, a failure to hold above the 200-day moving average would be bearish and negate any bullish scenario.
Russell 2000 (ETF) – Daily Chart
The 10-Year US Treasury yield ended the week 1% higher, though the price action remains within a bearish chart formation. It appears likely that the yield will continue to move sideways until the Federal Reserve is compelled to take action on interest rates.
10-Year US Treasury Yield
On Friday, the dollar gained ground against other major currencies, reaching an eight-week high against the yen. This rise was supported by data indicating a robust U.S. economy and the Federal Reserve’s cautious stance on interest-rate cuts, in contrast to more accommodative policies elsewhere. The chart shows a bullish setup, as other countries start to lower their interest rates. However, the FX market seems cautious about making significant moves ahead of the French election in late June or early July. Until then, one can probably expect more of the same type of price action.
US Dollar – Weekly Chart
The price action in crude oil has been bullish since rebounding from the lower support line, which was highlighted three weeks ago in the weekend report. The weekly PPO momentum indicator attempts to curl higher from the zero line, coinciding with price action’s attempt to break out from a bullish flag consolidation. The green horizontal trigger line, marking an area of resistance, is where the price currently sits. Next week, watch to see if the price can convincingly break above this level, which would bode well for energy stocks and the TSX.
Crude Oil – Weekly Chart
The TSX extended its weekly loss, marking the fifth consecutive weekly decline, as declines in commodity prices weighed on energy and metal mining shares. Concerns over surplus supplies and sluggish demand in China pressured copper prices, which have retreated from last month’s record peak. With the energy and materials sectors accounting for 32% of the TSX’s weighting, their performance is crucial. A rotation back into commodities could halt the decline, but until then, the short-term trend remains downward. Monitoring for stabilization that might suggest a bottom is essential. Many commodity charts are at a critical juncture, setting up for potential moves higher, though key levels remain unbroken. Each commodity chart presents a binary event, and the direction of these breakouts will heavily influence the TSX’s trajectory.
TSX – Weekly Chart
The price action in copper is intriguing. While it continues to consolidate, potentially forming a bullish flag or continuation wedge, it was precisely halted at the underside of both the 21-day and 50-day moving averages. The setup is now binary: Thursday’s level becomes a clear trigger line to watch for a breakout, suggesting a continuation of the uptrend. If it doesn’t break out, the consolidation may persist, or we could see a move lower.
Copper – Daily Chart
Gold continues to fluctuate, consolidating sideways between two horizontal lines. One might attempt to anticipate a breakout, but the setup remains straightforward. A move above the upper trendline would signal a continuation of the uptrend, while failing to hold the lower support line would negate any bullish scenario.
Gold – Daily Chart
Silver experienced volatility on Friday, which aligns with the broader market. The price action remains above its upward-sloping 50-day moving average. The setup is straightforward and binary: either the price continues to trend above this moving average, or it doesn’t.
Silver – Daily Chart
There isn’t much to say about the uranium space except that the ETF closed slightly higher as price action continues to test the 40-week (200-day) moving average and the lower trendline of its consolidation area. Continue to monitor these levels to see if the price action can start to swing upward. If the price action breaks below these levels, it negates any bullish scenario.
Uranium Theme – Global X Uranium ETF
The price action in Bitcoin has been discouraging as it continues to slowly bleed lower. Ideally, one wants to see the current level hold. If it doesn’t, there’s a chance the price could fall further to retest the 200-day moving average.
Bitcoin – Daily Chart
Ethereum is consolidating near its 50-day moving average, suggesting a potential bullish flag pattern. Keep a close watch to see if the price action starts to move higher. Pay attention to two key downside levels: the 50-day moving average and the previous breakout line, which once acted as resistance and should now serve as support. Monitoring these levels helps to create an expected plan and manage downside risk.
Ethereum – Daily Chart
US Daily Setups
AMZN – Amazon.com, Inc.
Amazon appears to be setting up on the right side of an area of consolidation located below its all-time high. Monitor closely for any potential signals that suggest a continuation of the uptrend.
LINK TO CHART – https://schrts.co/pHHdCHpc
CLSK – CleanSpark, Inc.
CleanSpark has fallen back into its pattern, with price action now resting on its moving averages, which could serve as a potential support level. Draw a horizontal line at this level and monitor closely to see if the price action can hold.
LINK TO CHART – https://schrts.co/uDETynUz
CVNA – Carvana Co.
Carvana appears to be setting up for a potential resumption of the uptrend. Monitor closely for any signs of upward momentum to confirm this move.
LINK TO CHART – https://schrts.co/XzfyArQb
GOOGL – Alphabet Inc.
Alphabet is attempting to break out to a new high. Monitor closely for signs of sustained upward momentum to confirm this breakout.
LINK TO CHART – https://schrts.co/NhAcAiRp
HALO – Halozyme Therapeutics Inc.
Halozyme Therapeutics appears to be setting up for a potential 52-week high breakout. Monitor closely for any signs of upward momentum that could confirm this move.
LINK TO CHART – https://schrts.co/FWMKFPMM
HOOD – Robinhood Markets Inc.
Robinhood has come back to retest the recent breakout level. Monitor closely to see if the price action can continue trending above its upward-sloping moving averages.
LINK TO CHART – https://schrts.co/fngvNBwh
ICE – IntercontinentalExchange Group, Inc.
Intercontinental Exchange appears to be setting up on the right side of a consolidation/continuation pattern. Monitor closely for any signs of upward momentum that could signal a breakout.
LINK TO CHART – https://schrts.co/ynwnUhzN
KSPI – Kaspi.kz JSC
Kaspi continues to set up below its recent highs. Monitor for any potential breakout signals.
LINK TO CHART – https://schrts.co/GStqXgSJ
MATX – Matson, Inc.
Matson appears to be setting up to resume its uptrend, as price action has successfully retested the breakout level. Monitor for signs of continued upward momentum.
LINK TO CHART – https://schrts.co/iTQxbNfx
NKE – Nike Inc.
Nike is starting to appear on momentum scans as price action creates a potential bottoming pattern. Monitor closely for any potential breakout signals. Remember, they report next week. Holding through earnings can be akin to gambling due to the night gap and lower risk.
LINK TO CHART – https://schrts.co/sUJrCBzm
NU – Nu Holdings Ltd.
Nu Holdings continues to consolidate below its 52-week high. Monitor closely for any potential signs of a trend resumption.
LINK TO CHART – https://schrts.co/WqcEbmtF
PLTR – Palantir Technologies, Inc.
Palantir has come back to retest its moving averages. Monitor this area on the chart to see if price action can hold and consolidate before continuing its uptrend.
LINK TO CHART – https://schrts.co/eehGZhWQ
SMCI – Super Micro Computer, Inc
Super Micro Computer has returned to retest the consolidation pattern’s upper trendline and moving averages. Monitor this level to see if the price action can hold and trend above the now upward-sloping moving averages.
LINK TO CHART – https://schrts.co/tgtMqKJf
SMR – NuScale Power Corporation
NuScale Power is attempting to break out to a new 52-week high above a major horizontal resistance level. Monitor closely for signs of sustained upward momentum to confirm a breakout.
LINK TO CHART – https://schrts.co/bxMMXVVB
Canadian Daily Setups
ATRL.TO – SNC-Lavalin Group, Inc.
SNC-Lavalin appears to be retesting its breakout line. Monitor closely for signs of support at this level to confirm the strength of the breakout.
LINK TO CHART – https://schrts.co/tEYWBZss
CP.TO – Canadian Pacific Railway
Canadian Pacific Railway continues to set up in the form of a potential bottoming wedge. Monitor closely for any signs of a breakout that could confirm a reversal of the trend.
LINK TO CHART – https://schrts.co/VScPMqGY
DFY.TO – Definity Financial Corp.
Definity Financial appears to be working towards the apex of a potential continuation pattern. Monitor closely for any breakout signals that could confirm a continuation of the uptrend.
LINK TO CHART – https://schrts.co/vYRdIuCF
GLXY.TO – Galaxy Digital Holdings Ltd.
Galaxy Digital continues to retest the recent breakout level, with price action hammering off the lower moving average on Friday. Monitor to see if this level can hold and if price action can continue to trend above the upward-sloping moving averages.
LINK TO CHART – https://schrts.co/QIsYmEaD
IGM.TO – IGM Financial Inc.
IGM Financial appears to be setting up for a potential breakout from a consolidation/continuation pattern. Monitor closely for any signs of upward momentum that could lead to a breakout.
LINK TO CHART – https://schrts.co/tVtiffpq
PYR.TO – PyroGenesis Canada Inc.
PyroGenesis continues to see bullish action, supported by robust volume, as price action attempts to break out from its bottoming pattern. Monitor closely for signs of sustained upward momentum to confirm this breakout.
LINK TO CHART – https://schrts.co/xQKVrJKQ
WELL.TO – WELL Health Technologies Corp.
WELL Health Technologies continues to set up for a potential breakout from a significant multi-year bottoming pattern. Monitor closely for signs of upward momentum that could confirm this breakout.
LINK TO CHART – https://schrts.co/ebCpmGHp
To conclude our report, we thank you for your engagement and insights. Your feedback is valuable, and we encourage you to share your recommendations. Stay attentive to the Daily Setups, the Workspace, and the Watchlists for emerging opportunities. Additionally, be sure to explore the PDFs of Friday’s scan results provided below. Until next time, happy trading!
US Scanner Results
Click on the CandleGlance chart to view it in full size. Find a chart that matches your criteria or interests. You can easily save it to your watchlist on StockCharts.com for further analysis and tracking or copy and paste the ticker list into your chart provider.
EXPORT – US Watchlist Scan – 2024-06-21
AA, ABNB, ABR, ACIW, ACM, ADEA, ADP, ADUS, AER, AGYS, AIR, AIT, ALRM, AMZN, AOS, APH, ASND, ASTH, ATGE, ATR, AU, AVDX, AVY, AWI, AXP, BAH, BBW, BCO, BHE, BKNG, BLK, BMI, BR, BRC, BRO, BROS, BSX, BSY, BURL, BV, CACI, CAH, CAL, CARG, CASH, CASY, CAVA, CBOE, CCEP, CDW, CECO, CENT, CENTA, CENX, CFB, CHE, CHKP, CI, CIEN, CL, CLH, CLS, CMPR, CMRE, CNM, CNO, COR, CPNG, CPRT, CR, CRL, CRUS, CSTM, CSWI, CTAS, CVLT, CVNA, CWAN, CXT, CYBR, DAC, DASH, DDOG, DHT, DIS, DOCU, DORM, DRS, DSGX, DTM, DVA, DXPE, EA, EBAY, ECL, EDR, EFX, EHC, ENLC, ENSG, ENTG, EQH, ERIE, ESAB, ET, ETHE, EWBC, FAST, FCN, FDX, FG, FICO, FLR, FN, FNF, FOR, FORM, FRO, FROG, FRPT, FSV, FTAI, FTI, FTV, GEN, GFL, GHC, GOLF, GOOG, GOOGL, GRBK, GRMN, GRPN, GSL, GWRE, HALO, HAYW, HCA, HD, HEI, HESM, HLX, HNI, HOOD, HQY, HRB, HTGC, HUBS, ICE, ICLR, IDCC, IGIC, IHI, INFA, INSW, INTU, IQV, IRM, ISRG, ITA, ITCI, JETS, KAI, KBH, KO, KRT, KRYS, KSPI, KTOS, L, LDOS, LEU, LIN, LMAT, LNC, LNG, LNW, LRN, LYV, MA, MATX, MEDP, MELI, MLI, MNDY, MOG/A, MORN, MPLX, MPWR, MRK, MSA, MSFT, MSI, MSOS, MTSI, MYGN, NCNO, NEE, NFLX, NHC, NMIH, NOW, NR, NSSC, NTAP, NU, NVO, NVR, NWPX, NWS, NXPI, NYT, OC, OLED, OLLI, ORLY, PAA, PANW, PATK, PEGA, PFSI, PNR, PNTG, POST, PPC, PRU, PSX, PTC, PTGX, PWR, QFIN, QSR, RBC, RCL, RDNT, REGN, RJF, ROP, ROST, RPM, RSG, RSP, RYAN, SANM, SAP, SCS, SEM, SFM, SLM, SMLR, SMR, SN, SNOW, SPGI, SPNS, SPOT, SPSC, SPXC, SQ, SRPT, SSNC, STEP, STN, STNG, STZ, SUN, TBBB, TGT, TJX, TK, TKO, TMUS, TNC, TNK, TOST, TRMD, TSCO, TTD, TTEK, TTMI, TTWO, TWST, TXRH, TXT, TYL, UFPT, UHS, UNM, URBN, URI, USFD, USLM, UTHR, UTI, VCTR, VEL, VERX, VITL, VNT, VRNS, VRRM, VSEC, VVV, WCN, WES, WING, WM, WTW, XLC, XLP, XLRE, XLV, XLY
Canadian Scanner Results
Click on the CandleGlance chart to view it in full size. Find a chart that matches your criteria or interests. You can easily save it to your watchlist on StockCharts.com for further analysis and tracking or copy and paste the ticker list into your chart provider.
EXPORT – Canadian Scanner Results – 2024-06-21
ADBE.NE, AFM.V, AIF.TO, AMZN.NE, ARE.TO, ARR.TO, ATD.TO, ATD/A.TO, ATRL.TO, BBD/B.TO, BBD/PC.TO, BHC.TO, BLX.TO, CAE.TO, CCL/B.TO, CLS.TO, CNC.V, CP.TO, CPH.TO, CRON.TO, CSU.TO, CVS.NE, DFY.TO, DIV.TO, DLCG.TO, DNTL.TO, DOL.TO, DSG.TO, E.TO, EMP/A.TO, EPRX.TO, ETG.TO, ETHH.TO, FIH/U.TO, FM.TO, FSZ.TO, FWZ.V, GFL.TO, GOOG.NE, GSY.TO, GTWO.TO, GWO.TO, GXP.CA, HD.NE, HMR.V, HOM/U.TO, HWO.TO, IFC.TO, IGM.TO, III.TO, INTC.NE, ISO.V, KEY.TO, KRR.TO, LGC.V, LNF.TO, LUG.TO, MARI.TO, MDA.TO, MRU.TO, MSFT.NE, MX.TO, NEO.TO, NG.TO, NGEX.TO, NKE.NE, PANW.NE, PYPL.NE, PYR.TO, QSR.TO, RBN/UN.TO, RBX.V, RCK.V, REG.V, RSI.TO, SGD.V, STC.TO, STN.TO, SXP.TO, T.TO, TRP.TO, TSLA.NE, TXG.TO, WCN.TO, WED.V, WELL.TO, WSP.TO, WUC.CA, X.TO, XTC.TO, ZDC.V
