The S&P and Dow rose nicely on Friday; the Nasdaq Composite lagged behind.

The S&P and DOW had very big gains on Friday. But the Nasdaq Composite gapped up at the open but did not move much higher during the session. It’s the movement of the session that is critically important – not where it opens. Bot the DOW and S&P closed near their earlier highs in late April and May.It is hard to imagine the stock market making big progress without the Nasdaq Composite following along. The stock market has been in a sluggish trading range since the middle of February.

 

The Technology Group has been weak since the beginning of May. Four of the seven individual sectors in the group lost strength, including big losses in the Technology Hardware, Semiconductor and Telecommunication sectors. This mirrors the comparative weakness in the Nasdaq Composite I mentioned above. Both the Finance and Consumer Staples Groups gained while the Technology and Cyclicals Groups shrank (i.e., the Cyclicals Group was almost even). The strongest sectors include Leisure, Banks and Apparel.

 

Here is the relative strength chart of the Apparel sector:

apparel

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