Jerry Samet
10-07-2017, 12:00 PM
The market had a pretty quiet session yesterday with the major averages trading in a tight range. There was early weakness as the employment report came in mixed with a weaker than expected jobs number. After opening a bit lower the major averages worked their way back up to finish little changed. The COMPQ was higher by .07% while the SPX declined .11%. The greatest strength was in the semiconductors as the SOX rallied .45%. All the major averages closed at their intraday trading highs, a sign of support. Volume was lower across the board, which is not unusual on a Friday as many market participants leave early. Leading stocks mirrored the market with the leaders index producing a modest gain of .16%. It was a closing high for the index but not a new intraday high. The index closed near the top of its trading range, a good sign of support for quality growth stocks. Volume was higher than Thursday, which is good, but it was still well below average. The leaders index is acting well, but it is advancing on light volume. I would feel better if there were some up days on strong volume. Overall the market is acting well. The major averages and the leaders index are working their way higher and the charts of both look solid. They are working their way higher with small daily gains that may be sustainable. The short term indicators I look at are still positive. We could well see a slight pullback or consolidation as the market has worked its way higher in the last week or two, but the overall picture is encouraging. Jerry