The Apple 'Halo Effect'
Strength in technology and financial stocks are the essential ingredients to a healthy bull market, so the lack of participation from these sectors precludes a bullish environment being able to sustain. At the moment, the financial sector is on the mend following the 2008 housing crisis. However, we expect to see a longer multiyear base formation develop before a new bull market is possible for that sector.
That leaves the technology sector as the key group for sustaining a bull-market environment. Despite a bullish price structure in the capitalization-weighted technology index, the internal structure of the group is on the defensive. The sector needs a bullish catalyst from the current oversold condition to pull it together and inject some strength into the overall market. A failure to do so would not bode well for a recovery rally....424 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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