FANG stocks support the stock market again

The FANG stocks are once again supporting the stock market. Facebook has zoomed higher, Amazon is near its three previous June highs, Netflix is well past the mid point of its drop that began June 9, ditto for Google. The S&P 500 and Dow are within their wedges but the Nasdaq Composite broke its short-term bearish trend line. The wedge pattern is caused, in this case, by the growth in the highs not keeping pace with increase in the lows. This shows a lack of excitement with stocks in general.

Money has moved out of the Financial Group and back into the Technology Group. My table of stock-market sectors shows every group losing strength except for the Technology Group (i.e., Financial, Cyclical and Consumer Staples all shrank).  The Cyclical Group suffered from pullbacks in the Auto, Real Estate, Retail, Media and Transportation sectors.

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

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