Market Direction and Stock Trends

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Mike Burk: Technical Market Report

* February 18, 2017

The good news is:

• All of the major indices except the Russell 2000 closed at all time highs on Friday.

The negatives

The negatives are fading.
New highs, which have been deteriorating for a while, picked up nicely last week and new lows remained dormant. The only negative remaining is the secondaries continued to lag behind the blue chips.

The positives

. . .

Seasonality

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

Conclusion

The breadth indicators were strong last week. The secondaries continued to under perform the blue chips. Seasonality for the next week remains negative. The market has not been following the seasonal pattern recently.
I expect the major averages to be higher on Friday February 24 than they were on Friday February 17.
Last weeks negative forecast was a miss.

Good Luck,

http://www.safehaven.com/article/43732/technical-market-report-for-february-17-2017

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