Jerry Samet
08-02-2018, 06:47 PM
The market put in an encouraging reversal today. After opening lower on news of more possible tariffs on China, the major averages saw their lows of the day in the first five minutes of trading and rallied for the rest of the session. All the major averages closed at their intraday trading highs, a good sign. The Nasd averages led the way on continued strength in big cap tech stocks after the AAPL earnings report. The COMPQ and the NDX were higher by 1.24% and 1.3% respectively. The SPX gained a still solid .49%. Volume was mixed. It was lower on the Nasd and higher on the New York. Leading stocks had a good day as well with the leaders index higher by .81%. The index closed near its highs of the day and reclaimed the important 50dma now support level. Volume on the index was lower than yesterday but still above average. Today’s action was very positive. The reversal was strong and there was buying throughout the session, resulting in a close at the highs of the day. The reaction the earnings report from AAPL has ignited a rally in tech stocks that has led to strong action in the Nasd averages. The New York averages are looking better as well. It would have been better to see higher volume on the Nasd, but the action was still positive. The picture certainly improved today and taking positions makes more sense. Jerry