📈 Stan Weinstein's Market Sentiment – June Update

Intermediate-Term Outlook

Still bullish overall.

The market continues to show strength in the intermediate term, with major indexes holding up well and trends remaining intact. This suggests that, for swing traders and position traders, the broader environment is still supportive of new opportunities—provided you remain selective and disciplined.

Near-Term View: Unbelievably mixed

While the indexes (such as the S&P 500 and Nasdaq) continue to print new highs or hover near them, there are troubling signs beneath the surface. Leadership stocks—especially those in the so-called Glamour Average—are showing weakness. This divergence between the indexes and the true market leaders is a classic warning sign for experienced traders.

• Signs of strength in the indexes can mask underlying distribution in key stocks.
• Watch for failed breakouts and increased volatility in former leaders.

Cautions & Warnings

• The ongoing weakness in the Glamour Average may be a leading indicator of a near-term correction. If the best stocks can’t make progress, the rest of the market often follows.
• The rotational nature of the market indicates churning, not trending. Sectors are taking turns leading and lagging, making it harder to find sustained moves.
• NYSE’s low number of new highs, despite major indexes nearing all-time highs, is concerning. Breadth is narrowing, which often precedes pullbacks or corrections.