Jerry Samet
12-26-2019, 06:30 PM
The market continued its strong yearend action today. The major averages opened with moderate gains and spent the rest of the session rallying. A late buying spurt saw all the major averages close at their intraday trading highs, a positive development. The Nasd averages were the strongest with the COMPQ and the NDX gaining .78% and .91% respectively. The SPX rallied .51%. Volume was much higher, as you would expect after a half session. Volume on the New York was up by 42.17% while it gained 45.97% on the Nasd. Leading stocks rallied as well, but less than the overall market. The leaders index gained .38% and closed in the upper half of its trading range. The index is sitting right on its short term 9dma support level. Volume came in very low. The market is acting well as the rally into yearend is going full steam. The major averages all made new highs with strong price gains. Volume grew but the comparison was easy. The action of the major averages is very good and it shows no current signs of getting into trouble. The real concern right now is the fact that leading stocks are underperforming the overall market. This can be seen in the sideways pattern in the leaders index and its weakening relative strength line. A similar pattern can be seen in the FFTY. A really healthy market that has staying power usually sees quality growth stocks doing at least as well or better than the major averages. The market may also be getting a little stretched in the short term as we have come a long way in a short period of time. It looks like the rally in the market is on solid ground and we should see higher prices into yearend and early January, but we should be on the lookout for a little weakness or consolidation of these recent gains. Jerry