Despite this week’s advance, the stock market is still weak

The stock market’s rise this week leaves the price under the long-term bullish trend line for the Dow and S&P 500; the Nasdaq Composite has been above its bullish trend line for the past seven weeks. Friday’s nominal up bar had a small range and a close that was in the middle of its range. The price is near the year-long resistance area. In other words, the market has not been able to surpass this area in the last twelve months. Friday’s action, I just described, makes it less likely that it will break through this time. . Breaking through is characterized by big forthright steps.

There is an even balance in my stock sector table between those sectors with big increases in relative strength and those with big losses. But, the loss of 2.2% in the retail sector, just before the kick off of the Christmas buying season, is ominous.

The chart below is the relative-strength chart of the Retail Sector.


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