By: John Kosar of Street Authority
All major U.S. stock indices posted gains last week except for the Russell 2000, which lost 1.2% and is also the only major index in negative territory for 2014. Despite the weakness in small caps, the broader market, as measured by the SP 500, has managed to rack up a decent 8.9% gain this year, largely on the back of technology issues.
The Nasdaq 100 is up 14.2% year to date. However, as I have been stating in this space for some time, if and when technology stocks stop leading, the broader market may be in for some significant problems over the near term.
Dow Makes New High, but Problems Persist
In last week's Market Outlook, I warned that the early September new closing high in the Dow Jones Transportation Average had not yet been corroborated by a new closing high in the Dow Jones Industrial Average, which, according to Dow Theory, was a red flag for the overall market.
That situation was averted last week by a new high in the industrials, clearing the way for more near-term strength in both indices.
But it may be too early to celebrate just yet, as potential problems continue to exist. Continue reading "Serious Headwinds May Put A Damper On The Market"