The stock market’s bounce lost steam on Friday

The stock market bounced off its recent lows with a vengeance. The Nasdaq Composite is stronger than both the S&P and Dow. It is above the mid point of the recent drop while the other two are below. Friday’s extremely tepid move in the S&P and Dow does not suggest much higher prices. But if and when it does move higher, it is going to run into a buzz saw of selling in the area of the long-term sideways move that was present before the drop.

A more positive picture is present in my relative strength market sector table.  These sectors in the Technology Group gained strength:
   software from -3.1% to -0.8%
   pharma -1.6% to -0.5%
   technology hardware -1.4% to 0.8% !
These sectors in the Consumer Staples Group lost strength:
   commercial svcs 0.8% fell to -0.4%
   food bev: 2.4 fell to 0.5%
   consumer 0.7% to -0.4%
   utilities fell 8.4% to 2.4%
These sectors in the Cyclicals Group gained strength:
   auto -1% to 2.4%!
   leisure -1.3% to 1%

The graph of cyclicals divided by consumer staples shows the cyclicals on top for all of last week. In other words, the cyclicals were starting to gain strength even during the big price dump. 

 On the graph of the S&P below, note the very low volume and small range (size of the price move) on Friday.sp500

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