Stock Market – confirmed strength following the reduction in the Federal Reserve’s QE

The stock market is strong, having resumed its upward trend. It reacted positively to the Federal Reserve’s announcement, on Wednesday, that it was lowering and eventually ending its Quantitative Easing program where it has been buying billions of
dollars of U.S. 10-year notes at auction with newly created dollars.

Our Stock Market Relative Strength Sector Table confirms the strength mentioned above. The bullish cyclicals and technology groups both grew at 1% for December with the Finance group coming in third with 0.67% and the defensive consumer staples
group falling by 0.1% in strength. The U.S.’ economy performs better when the dollar is stronger because it results in lower-cost inputs for things bought from foreign suppliers.This leads to higher profits due to the lower costs.

Here’s the Relative Strength Chart of the Computer Software sector:softwareHere’s the Relative Strength Chart of the Internet sector:internet

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