Jerry Samet
10-13-2020, 06:31 PM
The market put in an up and down session today before the major averages finished with small losses. All the major averages finished in the lower half of their intraday trading ranges. The New York averages were the weakest with the SPX declining .63% The COMPQ and the NDX fell by .10% and .04% respectively. Volume was lower across the board. It fell 6.82% on the Nasd and .29% on the New York. The volume on the New York was so close that other data feeds could have different results. Leading stocks had a strong day with the leaders index rallying 2.85% on the day. The index closed high in its trading range, a sign of support. Volume was higher and above average. This represents a new high for the index on both a closing and an intraday basis. The market acted pretty well today. After yesterday’s strong rally and follow through on the COMPQ, the market held up pretty well. The declines were small and the Nasd averages held almost all of their gains of yesterday. It is encouraging when the market holds gains after a large advance. The lower volume was also a good sign. Large institutional players were not dumping stocks today. I saw that IBD said volume on the New York was higher and assigned a distribution day to the SPX. As I said when volume is that close you can get different results. Leading stocks are acting well with the leaders index making a new high on strong volume. The relative strength line of the leaders index also made a new high. The market rarely gets into real trouble when quality growth stocks are acting well and outperforming the overall market. Earnings season is getting into full gear right now and that could add some volatility, but the rally looks like it is on solid ground and we should see higher prices ahead, at least in the short term. Jerry