The Stock Market Moves Into Its Resistance Area While Many Important Sectors Sink

The S&P, Dow and Nasdaq Composite all gained from their early October lows. But now, they’re back to the sideways area, or resistance area, that has been active since late 2014 for the S&P and DOW, and since February for the Nasdaq Composite. This week, the market hesitated. This is the opposite of the kind of action usually seen when price is going to blast higher.

My relative strength stock sector table shows widespread weakness. This is an important divergence with the stock market price that’s in a short-term bullish trend. Only the Technical Group gained, the Finance, Cyclical and Consumer Staples all lost. The were just a few big gainers including the Internet (+8.6%), Consumer (+2.9%), Chemical (+2.7%), Basic Materials (+3.8) and Leisure (+6.6%) sectors. Losses were widespread and large. The biggest losses were the Apparel (-10.3%), Utilities (-5.7%), Automobiles (-7.4%), and Retail (-4.5%) sectors.

Here’s the relative strength chart of the Apparel Sector:

apparel

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