Monthly charts force us to take a step back and identify the direction of the primary trend. By erring in the direction of these trends, we are increasing our probabilities of success. Markets trend. That’s why Technical Analysis works. This process at the end of each month is arguably the most valuable part of all the work I do. I can tell you that from the bottom of my heart.
One that definitely stands out here is the Dow Jones Industrial Average going out at new all-time monthly closing highs. This is the highest monthly close in the history of the stock market:
Another interesting one is Gold going out at new 6-year highs:
Here are Gold Miners doing something we haven’t seen in a long long time:
The Broker Dealers & Exchanges Index has had every opportunity to break down and lose those 2007 highs we’ve been focused on for so long. 59 is it for me. If we’re above that, then it’s hard to have a bearish outlook towards stocks. That’s how I see it:
Technology is just pennies from a new all-time high. We see no evidence whatsoever that this is not an uptrend. And this is the largest sector in America:
Sector Rotation is the lifeblood of a bull market. Energy stocks got a bid this month and went out near the highs. Further upside should be expected here and I think that’s consistent with stocks in general doing well:
I still like Internet stocks as a leadership group. The positive momentum is here and so is the relative strength. This Dow Jones Internet Index looks like it wants to go higher:
Here are the rest of the Monthly Charts for June.