CORRECTION TO JULY 4 BLOG
This will be an abbreviated review this holiday weekend, The full market review will be provided next weekend.
The stock market continued its upward move with the NASDAQ advancing over 2% this week leading all three averages higher. Indicator #6 was set to a “0” reading from a -1 as it
has not changed its value in six months. This still leaves the Dashboard at a “3” bullish reading. This can be seen in the table:
The Top 5 ETFs are doing well, are aup 8.88% for the YTD as seen on www.dark-liquidity.com.
10% Correction Coming?
Some readers of this site are concerned about the market’s continued advance without having a 10% correction since October 2011. The question I’ve been asked is
what do my indicators show regarding a possible correction of this magnitude and when will that correction occur. Most technical indicator are showing a strong market or an overbought condition.
Thus, the market is still in an uptrend and could go even higher. Nevertheless, the July through September period is typically the weakest time of year for the market. So we may see a correction during
this time period. But we won’t know until it occurs. Therefore, every investor needs to have their stop LIMIT orders or trailing stops in place to protect principal.
Have a great July 4th weekend.