The good news is:
The Russell 2000 (R2K) and Nasdaq composite (OTC) closed at an all-time highs last week.

​The Negatives

The negatives have been slowly deteriorating.

The first chart covers the past 6 months showing the Nasdaq composite (OTC) in blue and a 10% trend (19 day EMA) of Nasdaq new highs (OTC NH) in green. Dashed vertical lines have been drawn on the 1st trading day of each month.

OTC NH moved sharply upward last week, but failed to confirm the new all-time high in the index. The non-confirmation last week was not as bad as the one 3 months ago.

The next chart is similar to the one above one except it shows the S&P 500 (SPX) in red and NY NH, in green, has been calculated with NYSE data.

This chart looks pretty good, both the index and indicator have been hitting progressively higher highs for the past 2 months.  

The Positives

The negatives are falling away. 
The market has been moving upward during seasonal weak periods.
The secondaries have been outperforming the blue chips.
New lows have been declining, but not as quickly as you would expect in a robust market.
New highs have been increasing, but more slowly than you would expect.

The next chart covers the past 6 months showing the SPX in red and a 40% trend (4 day EMA) of NYSE new highs divided by new highs + new lows (NY HL Ratio), in red. Dashed horizontal lines have been drawn at 10% levels for the indicator; the line is solid at the 50%, neutral, level.

NY HL Ratio rose finishing the week at a comfortable 79%.

The next chart is similar to the one above except it shows the OTC in blue and OTC HL Ratio, in red, has been calculated with Nasdaq data.

OTC HL Ratio finished the week at a very strong 89%.

Seasonality

Next week includes the 5 trading days prior to the 3rd Friday of June during the 2nd year of the Presidential Cycle. The tables below show the daily change, on a percentage basis for that period.  

OTC data covers the period from 1963 to 2018 while SPX data runs from 1953 to 2018. There are summaries for both the 2nd year of the Presidential Cycle and all years combined. Prior to 1953, the market traded 6 days a week so that data has been ignored.

Average returns for the coming week have been modestly negative by all measures.

Report for the week before the 3rd Friday of June.
The number following the year is the position in the Presidential Cycle.
Daily returns from Monday through 3rd Friday.

OTC Presidential Year 2
 Year       Mon     Tue     Wed    Thur    Fri    Totals
 1966-2   0.51%   0.31%   0.20%  -0.02%   0.24%   1.24%
 1970-2  -1.41%   0.27%   1.66%   0.83%   1.46%   2.80%
 1974-2  -1.47%  -0.36%  -0.73%  -1.00%  -0.93%  -4.49%

 1978-2  -0.10%  -0.04%   0.22%  -0.26%  -0.40%  -0.58%
 1982-2  -0.81%  -0.56%   0.15%  -0.93%  -0.79%  -2.94%
 1986-2  -0.26%  -0.57%  -0.26%   0.29%   0.12%  -0.68%
 1990-2   0.42%   0.81%   0.49%  -0.38%   0.10%   1.45%
 1994-2  -0.35%   0.58%  -0.02%  -0.12%  -0.76%  -0.66%

 Avg     -0.22%   0.05%   0.11%  -0.28%  -0.35%  -0.68%

 1998-2  -1.68%   2.17%   1.33%  -0.21%   0.49%   2.10%
 2002-2   3.23%  -0.67%  -2.99%  -2.14%  -1.62%  -4.20%
 2006-2  -2.05%  -0.90%   0.65%   2.79%  -0.66%  -0.17%
 2010-2   0.02%   2.76%   0.00%   0.05%   0.11%   2.95%
 2014-2   0.24%   0.37%   0.59%  -0.08%   0.20%   1.33%

 Avg     -0.05%   0.75%  -0.08%   0.08%  -0.30%   0.40%

OTC summary for Presidential Year 2 1966 - 2014 
 Avg     -0.29%   0.32%   0.10%  -0.09%  -0.19%  -0.14%
 Win%       38%     54%     69%     31%     54%     46%

OTC summary for all years 1963 - 2017
 Avg     -0.20%   0.14%   0.01%  -0.03%  -0.01%  -0.10%
 Win%       42%     60%     61%     47%     56%     51%


SPX Presidential Year 2
 Year       Mon     Tue     Wed    Thur    Fri    Totals
 1954-2   0.14%   0.73%   0.73%  -0.28%   0.28%   1.60%

 1958-2   0.36%  -0.53%   0.89%  -1.61%   0.54%  -0.36%
 1962-2  -1.08%  -2.56%  -1.49%  -2.11%   2.87%  -4.37%
 1966-2   0.45%   0.28%  -0.39%  -0.30%   0.05%   0.08%
 1970-2   0.23%   2.38%  -0.20%   0.67%   0.71%   3.79%
 1974-2  -1.38%  -0.66%  -0.68%  -0.71%  -0.85%  -4.28%

 Avg     -0.28%  -0.22%  -0.37%  -0.81%   0.66%  -1.03%

 1978-2  -0.38%   0.02%  -0.09%  -1.15%  -0.94%  -2.53%
 1982-2  -1.15%  -0.25%  -0.75%  -1.17%  -0.30%  -3.61%
 1986-2   0.16%  -0.72%   0.26%  -0.38%   1.44%   0.76%
 1990-2   0.81%   1.28%  -0.37%  -0.55%   0.00%   1.18%
 1994-2   0.09%   0.71%  -0.38%   0.29%  -0.75%  -0.04%

 Avg     -0.09%   0.21%  -0.27%  -0.59%  -0.11%  -0.85%

 1998-2  -1.98%   0.98%   1.79%  -0.06%  -0.52%   0.21%
 2002-2   2.87%   0.09%  -1.65%  -1.34%  -1.70%  -1.74%
 2006-2  -1.27%  -1.03%   0.52%   2.12%  -0.37%  -0.02%
 2010-2  -0.18%   2.35%  -0.06%   0.13%   0.13%   2.37%
 2014-2   0.08%   0.22%   0.77%   0.13%   0.17%   1.37%

 Avg     -0.10%   0.52%   0.27%   0.19%  -0.46%   0.44%

SPX summary for Presidential Year 2 1954 - 2014 
 Avg     -0.14%   0.21%  -0.07%  -0.39%   0.05%  -0.35%
 Win%       56%     63%     38%     31%     56%     50%

SPX summary for all years 1953 - 2017
 Avg     -0.08%   0.15%  -0.01%  -0.14%  -0.01%  -0.08%
 Win%       55%     57%     47%     48%     59%     54%

Conclusion

The market has been moving upward during a period of seasonal weakness and the secondaries have been leading the way up.
The slow improvement of the breadth indicators makes me uneasy
I expect the major averages to be lower on Friday, June 15 than they were on Friday, June 8.
Last weeks negative forecast was a miss.