Jerry Samet
05-07-2020, 06:21 PM
The market put in a solid session today. The major averages opened strong and worked their way higher to about the middle of the day when some selling came in and the major averages sold off their highs. The real strength was in the Nasd averages, along with the small and mid-cap stocks. The Nasd averages closed in the upper half of their intraday trading ranges while the New York averages finished low in their trading ranges. The COMPQ and the NDX were higher by 1.41% and 1.30% respectively. The SPX was higher by 1.15%. Volume was higher across the board. It gained 3.77% on the Nasd and 5.83% on the New York. This shows that large institutional players were buying stocks. Leading stocks had strong gains with the leaders index gaining 3.09% on the day. The index closed high in its trading range and broke to new highs on both a closing and an intraday basis. The relative strength line is advancing strongly and volume was lower and below average. The market acted well today. Even with the late weakness the major averages still showed nice gains. The fact that quality growth stocks are outperforming the overall market is very positive as you rarely see important tops when quality growth stocks are acting well. We won’t know officially until after the close tomorrow but it certainly looks like there will be a weekly Coppock buy signal this week, likely on several important averages. I will report on this in Friday’s update. Right now it looks like higher prices are ahead and an attempt to run for the old highs is the most likely course right now. Jerry