Market Direction and Stock Trends

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~~~ Technical Market Report
By Mike Burk | July 3, 2017

The good news is:

• In spite of some deterioration in the indices, new lows have remained insignificant.

The negatives

New highs and new lows both continued to decline last week.

The positives

The secondaries outperformed the blue chips and new lows declined.

Seasonality

Average returns for the coming week have been mixed and a little stronger for the blue chips than the secondaries.

July

Since 1963, over all years, the OTC in July has been up 52% of the time with an average gain of 0.4%. During the 1st year of the Presidential Cycle the OTC in July has been up 77% of the time with an average gain of 2.7%. The best July ever for the OTC was 1997 (+10.5%), the worst 2002 (-9.2%).

Conclusion

Volume continued to increase last week and the secondaries continued to outperform the blue chips. New highs and new lows both decreased.

I expect the major averages to be higher on Friday July 7 than they were on Friday June 30.

Last week the Russell 2000 was up a little while the other major indices were down a little so I am calling last weeks positive forecast a tie.

http://www.safehaven.com/article/44065/technical-market-report-for-april-1-2017

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