Only four stocks propped up the whole stock market last year

The FANG (i.e., FaceBook, Amazon, NetFlix and Google) stocks accounted for all the gains during the sideways movement of the past months. This sideways movement hid the narrowness of what had been propping the market up.

The stock market is extremely weak. There was a bearish two-day reversal on Thursday and Friday that temporarily took out the August low, but the market closed above this point. Increasing demand pushed the closes of all three major indexes up on Friday. This was seen most clearly in the Nasdaq Composite, where it opened below the October low and inched higher but could not move above this point.

My chart dividing the cyclicals by the consumer staples continues to show extreme weakness in the cyclicals. My relative-strength stock-market sector table also shows wide-spread weakness. I suggest you log in to stock-compass.com to view the whole table. Rather than list all the sectors that were big losers, there were only three, outside of the defensive consumer staples group, that had significant gains: Aerospace, Retail and Telecommunications. This is just three out of a total of twenty one sectors that are outside of consumer staples.

Here is my chart of the relative-strength Semiconductor Sector:

semiconductor

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