According to Jay Woods, the S&P 500 has historically rebounded in July after a negative June, having advanced in each of the last eight years during this period. As of now, the index is down about 3% in June with two trading days left.
Woods emphasizes the importance of monitoring technical indicators, particularly the formation of a potential head-and-shoulders pattern, and the need for the index to stay above its 50-day moving average to maintain bullish momentum. He also highlights the May 5 gap around the 7,250 level as crucial support if stocks begin to retreat.
Additionally, Woods notes that the upcoming employment report will be significant; a reading that meets expectations could keep market focus on inflation and the Federal Reserve's policy without disrupting any potential rally.
In his analysis of specific stocks, Woods mentions General Mills, which has struggled this year but could be a buying opportunity at $34, and Constellation Brands, which is currently trading between support at $137 and resistance at $160. He advises waiting for a breakout before investing in Constellation.
Regarding Nike, Woods views it as a turnaround story, needing to reclaim the $42 level to improve its technical outlook