Jerry Samet
08-06-2020, 06:23 PM
The market had another solid session today, particularly for the major averages. They opened a bit lower and after bouncing around a little, but then started a rally that lasted pretty much into the close. All the major averages finished at or very near their intraday trading highs, continuing a recent pattern of strong closes. The Nasd averages led the way with the COMPQ and the NDX higher by 1.00% and 1.27% respectively. The SPX gained .64%. Small and mid-cap stocks, along with the semiconductor stocks took a break. Volume was mixed. It was up slightly by .98% on the Nasd and was lower by 6.16% on the New York. This is according to Esignal. Leading stocks took a rest today with the leaders index falling 1.33% on the day. The index closed in the lower part of its trading range and while volume was higher, it was very light. The market put in another positive session today. Leading stocks sold off a little but after recent gains it looked like a pretty constructive rest. The index has come a long way and a short consolidation while the moving averages catch up a bit is ok. Strength in the big cap tech stocks propelled the COMPQ and the NDX into new high ground. The SPX is just a little more than one percent from its all time high. The short term action of the Nasd averages may be getting them a little ahead of themselves. The high jump on the Nasd averages is a little stretched so a little corrective or even sideways action would not be unexpected. The distribution count has gotten pretty low due to the recent advance causing this indicator to become more positive. A rest, particularly in the Nasd averages would not be unexpected, but right now there is little to say that the rally is in any trouble. Jerry