Jerry Samet
01-06-2021, 06:38 PM
We had something of a split market today. There was weakness in the Nasd averages while there was strength in the New York averages. The market opened lower but quickly found a bottom and went into a solid rally. There was selling near the close, possibly due to chaos in Washington. The New York averages were strong and a couple made new highs. The SPX was higher by .57% and closed slightly below its recent high. The Nasd averages were lower with the COMPQ and the NDX falling .61% and 1.40% respectively. There was tremendous strength in the small and mid-cap stocks. The RUT gained 3.98% while the MID was higher by 3.91%. The New York averages finished in the upper half of their intraday trading ranges while the Nasd averages closed low in their trading ranges. Volume was higher across the board and very heavy. It gained 28.11% on the New York and 10.01% on the Nasd. That combined with the price decline on the COMPQ was enough for a new distribution day on the Nasd averages. Leading stocks were lower as there was weakness in tech stocks along with growth stocks in general. The leaders index fell 1.17% on the day and closed in the lower half of its trading range. Volume was higher and about average. This shows distribution in quality growth stocks as well. The market reacted pretty well today to the prospect that there will not be divided government. The chaos at the Capital may have caused some selling, but overall it was a pretty solid session. There was weakness in tech and growth stocks, but the prospect of large stimulus spending got the New York averages going. The strength in small and mid-cap stocks is positive. There were several fresh breakouts today and this is encouraging. Overall leading stocks are acting well as can be seen in the chart of the leaders index. There was a good bit of accumulation today under the surface as well. It seems that the trend is still up and the market should continue to work its way higher, as least in the short term. Jerry