Continued sideways motion in the stock market

The stock market has continued moving nowhere very quickly (ha ha). The Dow is moving sideways higher while the S&P and Nasdaq Composite go straight sideways. All of this on lower and lower volume. The move towards the Dow is for safety – people think. A truly safe place is out of the stock market unless you are ready to short the market, or individual stocks, when the time comes. Markets mostly move in big steps when they’re approaching a previous high with the intent to blast through. On the other hand, markets about to crash, tend to roll over.

My relative-strength sector table shows a huge divergence between the cyclical and technology groups; the cyclical group lost 1.45% while the technology group gained 1.51%. The huge 8.3% gain in the semiconductor sector during December, is one reason for the imbalance with the cyclicals. The next highest in the technology group was the electronics sector gaining 2.7%, no doubt tied to the Christmas season.

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