Technical Market Report By Mike Burk | August 21, 2017
The good news is:
• The market has been following the average seasonal pattern for the 1st year of the Presidential Cycle pretty closely and that pattern turns modestly positive for the next 2 weeks.
The negatives
The secondaries have been leading the way down and new lows have reached uncomfortable levels. There has been no sigh of a bottom.
The clearest sign of a bottom will be a sudden decline in the numbers of new lows.
The positives
The market is oversold so there could be a bounce and seasonality for the next 2 weeks is modestly positive.
Seasonality
Average returns have been modestly positive for the OTC and modestly negative for the SPX.
Conclusion
The market is following the average seasonal pattern for the 1st year of the Presidential Cycle pretty closely. That pattern calls for a little firming for the next 2 weeks prior to a decline into the end of September. The breadth indicators are showing no sighs of a bottom.
I expect the major averages to be higher on Friday August 25 than they were on Friday August 18.
News 
Market Data 
Discover 
