9 Monster Stock Market Predictions For The Week Of June 29

It will be a holiday-shortened trading week with the markets closed on July 3 in observance of the July 4 holiday. It means we will get plenty of economic data in just four days, with the ADP job report, ISM manufacturing report on Wednesday, and the BLS job report on Thursday. These are likely to be market-moving events, so they will all be essential. 

S&P 500 

I took another look at the S&P 500 (SPY) from a fresh viewpoint, and what stands out pretty clearly is the descending triangle pattern. The pattern is bearish, and based on the height of the triangle, could be suggesting a decline of about 9% from where the index closed on Friday. It results in a drop to around 2,720, and to an essential level of support that dates back to April 21. 

Is that likely to happen all this week, well let’s hope not? Sharp and sudden moves are never good. The slower, the better.

A break in the S&P 500 futures on Sunday night into Monday below 2980 certainly gets us moving in that downward direction. Based on where the IG weekend Dow is trading, which is down 80 bps, we are likely to open right on that support level. No surprise, I guess.

Micron

Micron (MU) reports on Monday after the close, they already pre-announced the quarter, so there should be no real surprise there. The stock hasn’t even reacted favorably. The only place the company could surprise is on how they see the rest of the year going. DRAM and NAND prices have been falling since the end of April, and that can’t bode well for guidance going forward and is likely to pressure margins lower. It likely means a disappointing outlook and a stock that goes to $45.50. 

Western Digital 

The pattern in Western Digital (WDC) also confirms this bearish outlook, and Western Digital is likely heading lower, too, towards $35.50. 

Facebook

Facebook (FB) was smashed last week, and it is likely to continue this week. I have been seeing bearish betting in this stock for two weeks in a row and noted it in a free story, and in this premium story for subscribers, Betting Indicates Facebook Falls on June 22. If the stock falls below $213, there is a good chance it declines to $203. 

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Disclosure: Mott Capital Management, LLC is a registered investment adviser. Information ...

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