May was horrible for the stock market and June started out even worse. Although we’ve seen a bounce over the last couple of days, our indicators suggest further weakening is likely. News out of Spain and the EU should further boost the market over the next day or two but volatility is still high.
The good news is that we currently don’t see a severe market decline on the horizon (Bear Market). We are likely to continue to see above normal volatility over the coming months but that is to be expected at this time of year with the current political climate.
Some industries are showing signs of weakening but earnings and balance sheets are still strong.