It’s only technology stocks that aren’t being squeezed into a wedge

The Dow and the S&P are both weaker than the Nasdaq. The Nasdaq Composite’s April 27 high was higher than its March 20 high. The S&P’s April high is just a bit higher than its February high; its April 27 high was an up thrust that was a two-day bearish reversal. The Dow is the weakest of the three stock indexes; its April 27 high was lower than both the February and March highs.

The stock market staged a two-day bullish reversal on Thursday and Friday. But it wasn’t perfect because Friday’s volume was much lower than Thursday’s. The Dow’s Friday up bar closed below Thursday’s high; this is weak. Bot the S&P and Nasdaq Composite had Friday highs significantly above Thurday’s. Overall, this shows that money is flowing out of defensive, big conglomerate stocks and into growth stocks.

The cyclicals are stronger than the consumer staples in the overall graph of the former divided by the latter. This is a marked divergence to the table of individual relative strength sectors showing eight of eleven sectors in the Cyclicals Group losing strength during April. It was only the Leisure, Energy and Basic Materials sectors in the Cyclicals Group that increased in relative strength. The Technology Group fared much better sporting four sectors out of seven improving. This included a positive reversal of the semiconductor sector, taking it from a loss to a gain.

Here’s the relative strength chart of the semiconductor sector:semiconductors

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