Jerry Samet
03-11-2017, 11:41 AM
The market opened strong yesterday after a better than expected employment report. After solid gains the major averages topped out in the first hour and sold off until all were in negative territory. They bottomed out and a late rally saw all the major averages close with gains. The COMPQ was higher by .39% while the SPX rallied .33%. All the major averages closed near their intraday trading highs, a positive sign. Volume was mixed, higher and above average on the Nasd and lower and below average on the New york. The most strength was again in the semiconductor stocks with the SOX gaining 1.17% and closing just under a new high. The small and mid-cap stocks performed about in line with the major averages, but have the worst charts. The RUT remains under its 50dma while the MID bounced off this important support level. Leading stocks did better than the overall market with the leaders index gaining 1.54% on higher and slightly above average volume. This showed that there was buying pressure in quality growth stocks. The index regained its short term 9dma and closed high in its trading range. It was a good bounce after the weakness of the last few days. Yesterday’s action was mixed. The market couldn’t hold its gains after a strong employment report, but late buying rescued the market from a negative reversal. The buying that supported the market late is a good sign, but it will have to continue next week to overcome the weaker action earlier in the week. Jerry