The Nasdaq reverses course and lead the market up

The Nasdaq reversed course to lead the market higher. It is now decisively over its May high while both the Dow and S&P 500 are just a few cents over their May highs. Both the Dow and S&P 500 had down thrusts on Thursday and Friday. That is where the market drops down during the trading day but reverses and moves higher to either wipe out the loss or greatly reduce it. This shows that demand is much more powerful then existing selling pressure.

Our Market Sector Relative Strength Table shows that the Technology group is the strongest of the four major groups. This mirrors the results in the Nasdaq in the paragraph above. Only two of its seven components lost ground. Staples rose more than cyclicals but Staples’ gain was skewed higher by a 7% gain in the relative strength of Health Care. The Cyclicals group was hurt by a 7.2% loss in the Building sector to go along with a 4.3% reduction in Real Estate.

Here’s the Health Care Relative Strength Chart:

health

Here’s the Building Relative Strength Chart:

building

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