Simultaneous Buying and Selling Pressures is Stagnation

The stock market has climbed back nicely from the drop between the middle of September to the middle of November. The S&P and DOW have moved above the mid point of that drop and stayed above. But, they also have made virtually no further progress. This gives us simultaneous bullish and bearish signals. Both the Nasdaq composite and the Nasdaq 100 have moved back below the mid point of the recent drop after just a couple of bars above. This is very bearish and is a divergence between the Nasdaq on the one hand and the Dow and S&P on the other.

Stock sectors analysis shows continued strength in transportation and bio-technoology. But the resistance to gains that the market is showing can be attributed to the persistent weakness in technology. All of the technology group except for bio-technology lost relative strength. This includes semiconductors, telecommunications, technology hardware and computer software.

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