Although this past Friday was a difficult session for bulls, trading the past seven sessions has seen a pause in the May declines and a bit of a comeback for the major market stock composite indexes.
However. caution may be warranted for those considering jumping back into the market just yet. Seasonal price history over the last few years indicated the market could easily pause its decline this month and actually bounce back a little. the key question going forward is how well the market fairs in July and August.
Looking at the Annual Cycle, the 2-year (Congressional) Cycle, and the Presidential Cycle EchoVectors does not inspire confidence that we have seen the end of selling yet this summer...
See the chart of the DIA attached below for confirmation:
DIA ETF 4-Year OHLC Daily