Now that May’s trading days are over, it’s time to think about June, the summer, and the second half of 2020. The recession is already seeing what economists hope are the worst readings, and the stock market and other markets are already discounting that the economy will be vastly better in the coming months. As for looking ahead, sometimes the best way to get a message out is visually in charts and graphs.
24/7 Wall St. has created a weekly review of some of the best charts, tables, graphics and other images that should be given deep consideration ahead based on what has been happening and what might come to pass. Anyone who has their money in the stock market or bond market should give at least some of these deep consideration ahead.
For the week ending May 30, 2020, the real read is how it will pertain to June and future months. We have first covered the S&P 500 and the big levels that are very close in gold and oil. Then we covered the stocks of Canopy Growth Corp. (NYSE: CGC), Tesla, Inc. (NASDAQ: TSLA) and in Williams-Sonoma, Inc. (NYSE: WSM). After that we have our economic charts on deck.
A brief commentary has been provided on each chart and graphic, as has the source of each item featured. These may have been numbered, but the importance of each chart will depend upon the reader as these are not intended to be ranked.
Here are the 10 top charts we are seeing heading into June of 2020.
1) S&P 500: Now Overvalued or More Room to Run?
The S&P 500 spent part of February and most of March in outright panic mode as the novel coronavirus morphed into the COVID-19 pandemic. It took the stock market down with it, and it caused the deepest and fastest recession in history with 10 years of growth and the best jobs market with it. You know the rest, but this chart from Scott Redler of T3 Trading Group on Friday afternoon shows where we are now.
The S&P 500 is back above 3,000 and Friday’s 3,044.31 close is only about 10% under the absolute highs for the S&P. Where this goes from here remains to be seen, but Mr. Redler shows some key pivot areas for support and resistance ahead.
Source: @RedDogT3 on Twitter
2) As Gold Approaches $1800…
Many technicians and fundamentalists alike are still calling for gold to rise plenty higher. We have seen some calls for $2,000 gold and some for even much higher under the right circumstances.
With so much global uncertainty, gold now even seems like a must-own commodity for any investor or anyone who wants to preserve the long-term values of their assets. And with the rising supply of currency and with the trillions of stimulus dollars that have been created to stimulate and stabilize the economy, gold also seems like a sure bet.
What does its chart say? As gold is close to $1,750 per ounce, the highs of above $1,800 from 2011 should come to mind. Or should it? The real test may be at $1,800. That level formed a nearly perfect triple top in 2011 and 2012 after gold had pulled back to under $1,600. Maybe this time is different, or maybe a breakout will be seen. And there you are.