A continuing sluggish stock market

The S&P 500 is the only one of the major indexes to move above its September high. The DOW was about even with its September high while the Nasdaq 100 was considerably lower. In good times, it’s the technology laden Nasdaq that leads the way. But technology is still suffering. That means that a major part of the growth sector is ill.

Stock sector analysis helps to illimunate the details. Transportation increased in relative strength suggesting underlying strength in the economy. But both gasoline and crude oil
increased (along with federal taxes) thereby increasing expenses and reducing growth. But
the big problem is the weakness in the technology group. Technology hardware lost 8%,
telecommunication services lost 7%, computer software lost 1% and semiconductors gave up
their recent gains and were fractionally down. Only bio technology gained strength. This
is a recipe for ongoing weakness and sluggish movement at the best.

Here’s the technology hardware relative strength chart:

Here’s the telecommunication services relative strength chart:telecom

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