Jerry Samet
04-28-2018, 12:08 PM
The market gapped higher at the open yesterday on strong earnings reports, mostly in the tech sector. The major averages showed solid gains early and it looked like the gains of the previous day would be built on. It didn’t last long as the major averages saw their highs in the first five minutes of trading and sold off from there. After giving back the early gains the major averages traded mostly sideways the rest of the session and closed little changed. The COMPQ finished with a gain of .02% while the SPX was higher by .11%. The SPX closed in about the middle of its intraday trading range while the COMPQ finished near the bottom of its trading range. Volume was lower across the board so there was no stalling day on the Nasd averages. Leading stocks were pretty flat as well with the leaders index finishing with a decline of .01 points and a percentage change of 0.00%. The index closed in about the middle of its trading range and is sitting right on its 17dma. Getting comfortably above this important moving average would be a positive development. Overall the trading action yesterday was disappointing. There were solid gains early in the major averages and strong early gains in several important tech stocks that reported earnings after the close on Thursday. Those gains didn’t last and the major averages lost all or most of the early gains, as did AMZN, INTC and MSFT. The major averages are still below their respective 50 day moving averages. The key to the future of this rally attempt is the ability of the major averages to clear this important resistance level. If they can’t the rally attempt will fail. Jerry