The market is stuck in a state of flux at the moment. Traders carrying a bullish or bearish bias can certainly find the evidence they need to build their respective cases in the current environment. We view the current evidence as leaning bullish, and we're looking for an upside resolution to the current price structure. However, there are problems, one of which is the technology sector. The tech sector has been sluggish and continues to display internal weakness. A return of strength in this group would be key to creating and sustaining a bullish market environment; the current weakness is a bearish headwind for the market.
The cap-weighted technology indices have been strong relative to the market due to the heavy weightings in names such as Apple (AAPL). The Russell 1000 technology index surged last year and has pulled back within a bullish long-term price structure for a retest of key support. The price action in the Russell tech index looks bullish and supportive of a bull market environment....280 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.