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Market Watch Weekly | June 19th, 2020 | Happy Father's Day!

Erik Dekker - Jun 19, 2020
North American indices clawed back some of last weeks losses, finishing higher for the fourth week in the last five. Covid and market fundamentals aside, Friday was an interesting day from a technical perspective.

North American indices clawed back some of last weeks losses, finishing higher for the fourth week in the last five. Covid and market fundamentals aside, Friday was an interesting day from a technical perspective, which for a couple reasons meant that it was always going to be a volatile day. The S&P 500 will have its first rebalancing of the year at Friday’s close, more than three months after the market’s wild swings forced S&P 500 and the Dow Jones Indices to delay this traditionally quarterly event.

Index rebalancing has often been associated with an uptick in market volatility as index and exchange-traded funds tracking the S&P 500 have to adjust their positions. There are estimates that more than $11.2 trillion in assets are indexed or benchmarked to the S&P 500, so a lot of money was going to change hands.

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