Long-term and under the covers, the market is still bullish

The stock market has moved to a loss for January. However, the longer-term view shows the stock market still bullish. In fact, the Nasdaq Composite is till above its longer-term trend channel that began in October 2011. Prices are completely contained within
their respective trend channels of the same period for both the S&P and DOW suggesting this trend will continue. Last week’s losses in the DOW and S&P have merely moved the price away from near the top supply line.

Our Relative Strength Stock Sector Table shows much more strength than weakness but the overall graph of cyclicals versus consumer staples has dropped showing weakness. But the defensive Consumer Staples group became weaker dropping from -.5% to -.6% in the
past weekand the Technology Group zoomed higher from 1.5% to 2.6%.  The Technical Hardware sector rocketed up from .5% to 3.1% while the Semiconductor Sector moved from -.8% to 2.4%. The Transportation sector, also a window into our economic status, moved from 1.6% to 3.7%.

Here’s the relative strength chart of the Technical Hardware Sector:technology

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