Weekly stock market review

The Dow and S&P500 have dropped over the last three days while the Nasdaq (both composite and Nasdaq 100) has continued the sideways move that has lasted for the last seven sessions. The drop in the Dow and S&P appears to be a picture-perfect bullish bias. The down bars have had lower volume and their ranges have been small. The up move on Friday seems to have stopped the down move as the lows on Thursday and Friday were at a similar level. This suggests demand preventing a further loss. This is significant as it happened above the former trader range.

Another positive sign for the market comes from stock market sector analysis. The technology hardware sector has improved in relative strength during March by 2.9% and the overall consumer staples sector is now performing worse than the overall technology and finance sectors. The overall cyclical sector is being hurt by huge drops in relative strength in the energy and basis materials sectors. This suggests that there is no inflation on the horizon.

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