Jerry Samet
01-30-2019, 07:30 PM
The market staged a powerful rally today. The major averages opened higher and rallied most of the session. The Nasd averages led the way as tech stocks were strong. The COMPQ and the NDX were higher by 2.20% and 2.64% respectively. The SPX gained 1.55%, also a strong showing. All the major averages closed near the top of their intraday trading ranges, showing that there was buying support throughout the day. Volume was a lot higher than yesterday, showing that large institutional players were buying stocks heavily. Leading stocks rallied as well with the leaders index gaining 1.68% on the day. The index finished high in its trading range and continues to rally above its short term 9dma. Volume was higher but slightly below average. The market rallied strongly today as the major averages put in another follow through like day. The rally began early but accelerated when the Fed announcement came out. It was about as market friendly as it could get and pretty much removes the Fed as a problem for the market in at least the short term. The gains were large but tech related stocks were the strongest after AAPL’s earnings. The INDU is certainly the least relevant of all the major averages, but today it became the first of the major averages to break above its 200dma, and it did it on heavy volume. The other averages are more important and the key right now is to see if they can also overcome this resistance level. They are between two and four percent below this level now. Jerry