Market Direction and Stock Trends

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Mike Burk: Technical Market Report

* January 21, 2017

The good news is:

• New lows have remained at benign levels.

The negatives

New highs have continued to deteriorate and last week the blue chips outperformed the secondaries.

The positives

While new highs have been collapsing they have continued to outnumber new lows by strong margins.

Seasonality

Average returns for the coming week have been modestly positive by all measures.

Conclusion

All of the major indices declined slightly last week. New highs continued their decline and the secondaries underperformed the blue chips. The only data set that keeps me positive is new lows which have held steady at non-threatening levels.
I expect the major averages to be higher on Friday January 27 than they were on Friday January 20.
Last weeks positive forecast was a miss. All of the major indices were down a little.

Good Luck,

http://www.safehaven.com/article/43513/technical-market-report-for-january-21-2017

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