The Stock Market is in a Bearish Trend

All three stock-market indexes are in a bearish trend that began December 1st. On Thursday, the stock market indexes roared higher but sank near the close, thereby going back underneath their bearish trend lines. The volume was truly tiny on Thursday indicating very little demand pressure. Part of the low volume was due to the shorter session due to the Christmas holiday but if we double the volume it would still be extremely small.

Cyclicals divided by consumer staples continued it’s bearish move without abatement. This chart began to sink in July while the stock market was in the middle of its year-long sideways move. . My stock sector table shows widespread weakness. One of the few sources of strength, bio-technology, rose to a new high this month of .6.4% since December 1. But this is a bubble as many of these companies’ earnings are not commensurate with their high prices. The Apparel sector dropped over the last two weeks to -3.4%. The Computer Software Sector dropped from 1.9% last week to -.08% currently

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

apparel

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