Jerry Samet
02-12-2019, 07:21 PM
The market put in a strong rally today. News came out yesterday about a budget deal and the market gapped higher at the open. The major averages rallied throughout the session and all closed at or very near their intraday trading highs. The COMPQ and the NDX rallied 1.46% and 1.53% respectively. The SPX was higher by 1.29%. Volume was considerably higher across the board, showing that there was buying by large institutional players. Leading stocks were strong as well with the leaders index gaining 1.51% and closing high in its trading range. Volume was higher and well above average. The market acted very well today. We had another follow through like session with strong gains in the major averages on heavy volume. This shows that there was a lot of buying going on today. The SPX traded above its 200dma and closed right on it. All the other major averages are within one percent of this important resistance level. The INDU and the SOX remain above this moving average. The action today was positive, although it was news driven. The rally is looking strong as more quality growth stocks are breaking out and producing worthwhile gains. We still have to see the major averages overcome their 200dma’s,but today’s action was encouraging. Jerry