Jerry Samet
04-16-2019, 07:32 PM
The market opened strong with the major averages showing solid gains early. They made their highs in the first hour and spent the rest of the session either going sideways or working their way lower. The Nasd averages were the strongest due positive action in tech stocks. The COMPQ and the NDX were higher by .30% and .34% respectively. The SPX rallied .05%. There was unusual strength in the semiconductor stocks with the SOX rallying 3.19% and reaching new highs. The Nasd averages closed in the upper half of their intraday trading ranges while the New York averages finished low in their trading ranges. Volume was higher across the board. This is generally a positive but it is a little worrisome when prices lose early gains. Leading stocks were generally higher as well with the leaders index gaining .40% on the day. The index closed low in its trading range but still made new highs on both a closing and an intraday basis. Volume was higher but still below average. There was a strong open today and it looked like the major averages might make substantial gains. Most of the early gains were lost. The COMPQ danced with the 8000 level and closed right on it. The New York averages were weaker and showed some stalling type action. The leaders index also showed some stalling type action with a close low in its trading range on higher volume. The A’s minus E’s also turned down today as the market is hesitating just below its old highs. This is not unusual action at important resistance and the rally is still on track. We could well see some weakness here but right now the market looks like it will likely make a run for the old highs. We are getting into the heart of earning season and the quality of the reports will have a lot to do with the near term direction of the market. If the major averages get to new highs, particularly on heavy volume, we will probably see it move nicely higher. If it can’t break above the old highs then lower prices are likely ahead. Jerry