General stock markets stalled this week while technology sectors marched higher. Positive economy data on December retail sale provide a floor for the stock prices while Trump's comment on high drug prices damaged the drug and healthcare stocks. For the week, S&P 500 index closed at 2274, down 0.1%, Dow Jones Industrial Average lost 0.39% while technology laden NADASQ composite index increased 0.96%.
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| Weekly chart of S&P 500 index |
S&P 500 index looks to be forming a top pattern in the weekly chart with Dow Jones Industrial Average failing to break above the 20000 psychological barrier for five consecutive weeks. The momentum of the index is still in the extreme high area but starts to flatten out. As earning season is upon us and volatility will increase accordingly, caution is needed at this juncture.
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