The S&P/ASX 200 Index (ASX: XJO) isn't exactly charging ahead into the end of the financial year.
At the time of writing, the benchmark index is relatively flat at 8,820 points, down 0.03%.
That leaves the market stuck in a holding pattern on Tuesday, with weakness across the miners offsetting some support from the big banks.
July has often been a strong month for local shares, giving investors something else to watch after today's quiet finish.
So, could the ASX 200 be setting up for a stronger July?
Let's take a look.
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Why July is getting attention
According to The Australian, July has historically been one of the better months for local shares.
Over the past 40 years, July has been the second-best month of the year on the ASX, with an average gain of around 2.07%.
The ASX 200 has also risen in 15 of the past 17 Julys, with an average move of 3.1%.
The S&P/ASX All Ordinaries Index (ASX: XAO) has been even stronger on that front, rising in each of the past 14 Julys.
Of course, investors can't rely on history alone.
Interest rates, commodity prices, the Australian dollar, and offshore leads can still change investor sentiment quickly.
But after a quiet finish to June, it does give investors another reason to watch how the market starts the new financial year.
Why June selling can turn into July buying
Dividends are one reason July gets plenty of attention.
A big part of that is the cash being paid back to shareholders.
NAB, ANZ, Westpac and Macquarie are paying a combined $9.3 billion in dividends this week, and some of that money can end up back in the market, especially if investors are looking to put income to work again.
Then there's the June selling to think about.
Some investors sell losing stocks before the financial year ends to lock in tax losses. Once that pressure eases, parts of the market can bounce in July.
That's why some weaker stocks can attract bargain hunters once the new financial year begins.
Can the ASX 200 push higher from here?
The ASX 200 has a few things going its way, but it is not all one-way traffic.
Wall Street gave investors a better lead overnight. The S&P 500 Index (SP: .INX) rose 1.2%, while the Nasdaq Composite Index (NASDAQ: .IXIC) jumped 2.1%, with both indexes ending 5-day losing streaks.
But that doesn't solve everything for our local market.
Resources shares are still under pressure today, despite the strong night for US technology shares.
Overall, June is ending without much excitement. The question now is whether July can bring a bit more buying after a cautious end to the financial year.
