Stock Market Week in Review

The stock market is still in a trading range. It made nice gains early last week which were completely wiped out by the drop on Thursday. Friday’s up bar action was weak and recovered only a little bit of Thursday’s loss. There is still a significant amount of selling pressure and very little demand. Overall, the market gained after being below its trading range for only three sessions (on June 1, June 4 and June 5) and then rose smartly. This gives the trading range a bullish bias. The action of the last two days means that we have longer to wait before the market will be ready for the next bullish move.

There are positive signs In the stock-market sector analysis. The technology group containing technology hardware, bio-technology, semiconductors,computer software, and telecommunications – all gained in relative strength. Weakness was seen in an amazing 7.5% crash in the relative strength of the transportation sector. Capital goods, consumer durables and energy all sank more than 4% in relative strength. Of course, lower energy costs is very positive for the economy.

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