Caution: These 2 Charts Warn of a January Correction

In last week's Market Outlook, I warned that continued weakness in the technology sector, which to a large degree drove the 2014 broad market advance, could become problematic, especially in January and February when seasonal factors begin to weigh on stocks. My fears may be materializing as all major U.S. indices closed lower last week, led by the tech bellwether Nasdaq 100, which lost 1.9%.

As long as technology is weak, and the small-cap Russell 2000 -- the other traditional market leader -- remains below its 1,213 March 2014, the stock market could be in for a tough January. (more)

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