Stock market week in review

The Nasdaq composite continues to lead the DOW and the S&P 500. It is well above its former trading range while the S&P and DOW both made a stand a bit above the top of their former trading ranges. The gap higher day in the Nasdaq on Tuesday was respected as there was no close the rest of the week lower than Tuesday’s open. All of the stock market indexes show that demand and a lack of supply have prevented a move lower.

Sector analysis reveals difficulties not seen in the overall indexes. While strength is seen in the technology hardware sector and in the banks, most parts of the cyclical group lost relative strength led by a 10% drop in the energy sector and an 8% crash in basic materials. But as stocks that represent commodities tend to turn earlier than the commodities – this might be very good for the economy and the market (i.e., a large drop in the price of gasoline would help the economy).

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