Jerry Samet
04-20-2017, 07:27 PM
The market staged a solid rally today. Like yesterday the major averages opened higher, but unlike yesterday they were strong throughout the session. The COMPQ finished with a gain of .92% while the SPX rallied .76%. The greatest strength was in the small caps and the semiconductor. The RUT was higher by 1.24% and the SOX was up by 1.58% and it regained its 50dma. All the major averages closed high in their intraday trading ranges, a sign of support. Volume was mixed, slightly lower on the Nasd and a bit higher on the New York. Leading stocks were strong as well with the leaders index gaining 1.55% and closing near the top of its trading range. The index broke above its important 17dma, a very good sign. Volume on the index was lower than yesterday but about average and the relative strength line of the index is looking better. Today was a positive session and went a good distance toward improving the picture. All the major averages and the leaders index rallied the entire session and held their gains. The leaders index broke above important resistance and is not far from breaking above the consolidation it has been in for a month. The Nasd averages are also very close to new high ground. The SPX closed almost right on its 50dma. The market needs a little more action like today to strengthen the case for a rally resumption, but today’s action helped. Jerry