The stock market remains bullish despite big losses in Energy and Leisure

All three stock market indexes (DOW, S&P and the Nasdaq Composite) moved up Tuesday onward. The S&P and DOW are stronger than the Nasdaq. The DOW and S&P have moved above the late November high while the Nasdaq is still below. On a short-term basis the stock market has rocketed up following the October lows. It has moved above the high previous to the October low. This is bullish.

My relative strength stock sector table shows the weakness in the technology laden Nasdaq: the Internet and Telecommunication sectors are suffering very large losses – 4.9% and 6% relatively. Losses bigger then 3% are quite large. The Cyclicals group is pulled down by huge losses in the Basic Materials , Leisure and Energy sectors.  Losses in the Energy sector, mirroring shrinking gasoline prices may be part of what is pushing the market higher. The Transportation sector also sported high gains signalling an improving economic picture

Here’s the relative strength chart of the Transportation sector:transportation

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