July 6, Stock Market Summary

End of the week selling has taken the major ETFs off the weekly highs. The shortened trading week started out bullish for stocks as some minor resistance levels were broken, indicating a further rise in stocks. On June 6 though, that buying came to a halt, and selling eroded or completely erased all gains seen during the week. As discussed in last week’s market summary, there still could be upside in this market, but it is unlikely that the index ETFs will be able to create new 52-week highs. Despite the late week selling, though, the indexes are in a short-term uptrend, which could continue. But caution is warranted on the long side. We have had one wave down in the market followed by a correction. If we move lower again, the drop is likely to be more volatile than the drop we had in May.