The current sideways movement in the stock market is bullish

The stock market's sideways movement is a sign of strength rather 
than weakness. This is because there is an overhang of supply 
originating from the October 2007 high. The market has climbed back 
to that old level. Believe it or not, there are people who invested 
then who have waited all this time to be able get out without a 
loss. This selling pressure, is being absorbed by "stronger hands" 
thereby pushing the market sideways. If there weren't enough buyers 
to sop up all the selling then the market would have moved down 
instead of sideways.

Our Stock Sector Table clearly shows the problem dragging down the 
market. Both semiconductors and technology hardware have lost 
relative strength in six of the last seven months. Strength arises 
from consumer durables and transportation; in both cases strong 
increases in relative strength over the last few months. Overall, 
cyclicals are ahead of consumer staples; finance is also doing well. 
Once technology's selling pressure dissolves then the market 
should move ahead more strongly.

Here's the relative strength chart of Semiconductors:
Here's the relative strength chart of Consumer Durables:

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