The Nasdaq broke its bearish trend line

The Nasdaq Composite, that previously had been weaker than the S&P or Dow, broke its bearish trend line on Friday. A handful of technology companies reported positive earnings reports and their stocks shot higher. This included CRM, AMAT, and NVDA,. Will the Nasdaq energize the whole market higher? The extremely high valuation of stocks cannot be ignored.

 

My relative-strength stock sector table shows big gains the Technology Group’s  Software and Semiconductor sectors. But, Telecom, and Bio-technolgoy, also within this group had big losses. The Cyclical Group got slaughtered. The Auto Sector off a humongous 5.6%, Basic Materials off an even bigger 10.4%, Media down a very-large 3.7% and the Leisure Sector down 2.7%. The overall Cyclicals Group was the biggest loser at -2.92%.

 

Here’s the chart of the S&P 500:

sp500

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