Stocks dropped this week

All three major stock indexes, the S&P, Dow and Nasdaq Composite, all lost ground last week. None of them broke their bullish trend lines and it was only the Nasdaq where the price is close to the bullish trend line. The S&P on Friday moved up very weakly in response to the big drop on Thursday. It seems to much easier for the market to fall than to rise.

My relative-strength sector table shows the Automobile Sector gaining a very large 5.7% since August 1. But the sector lost an average of 3.7% in price. The Technology Group had every one of its sectors lose strength except for the Technology Hardware Sector. This is a reversal  from previous weeks when the Technology Group gained with the Cyclical Group dropping. It’s important to note that when one or the other is weak it will be very difficult for the market to move higher.

Here is the chart of the S&P 500:

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