Jerry Samet
01-15-2019, 07:11 PM
The market put in a very good performance today. After opening strong the major averages advanced most of the session. There was some selling after the announcement of the vote in London, but that was quickly made up. All the major averages finished at or very near their intraday trading highs, a solid sign of support. The Nasd averages were the strongest with the COMPQ and the NDX higher by 1.71% and 1.97% respectively. The SPX was up by 1.07%. Volume was higher across the board. That combined with the price gain produced a follow through day on the COMPQ. The previous follow through was only on the SPX. Leading stocks were strong as well with the leaders index gaining 1.92% and closing high in its trading range. Volume was higher but still below average. Today’s action was very positive. The markets rallied in the face of negative news. How the market reacts to news is more important than the news itself. The market looks like it is rallying on bad news, a good sign. The Nasd averages also produced follow through action to join the New York averages. Just as important the Nasd averages overcame the 50dma resistance level today. Even better they did it on higher volume, showing that large institutional players were buying stocks today. The leaders index is close to new high ground and its relative strength line did make a new high today. The New York averages are still just below this important moving average. It would be good to see them join the Nasd averages. The market looks like it wants to continue higher and the next targets are the 200dma’s of the major averages. Jerry