Jerry Samet
03-31-2021, 06:30 PM
The market ended the first quarter on a strong note. The major averages opened higher and spent much of the day moving up. There was selling in the last half hour or so but the major averages closed with solid gains. The Nasd averages were the strongest and they all closed high in their intraday trading ranges. The COMPQ and the NDX gained 1.54% and 1.51% respectively. The New York averages finished low in their trading ranges. The SPX was higher by .36%. Volume was higher across the board. It gained a modest 3.05% on the New York and 1.73% on the Nasd. This combined with the price gains on the COMPQ produced a follow through on this major average. Leading stocks rallied as well with the leaders index gaining 1.28% on the day. The index closed low in its trading range on lower but still above average volume. The market acted well today with solid gains in the major averages and leading stocks. I guess a multi trillion dollar spending package will get things going. The major averages were strong most of the day but some late weakness saw the market close off its highs. Interestingly there was a lot of volume in the last hour of trading and that is what put the volume figures above yesterday’s levels. The price gain in the COMPQ and the higher volume produced a follow through in this important average. This improves the picture an gives move confidence in the market. The Nasd averages now must break above their respective 50dma’s. This is the next line in the sand for them. The semiconductors were strong and the SOX gained 2.64% and it broke above a declining trendline on its chart. The follow through today brightens the picture. It probably makes it safer to buy new positions, but I would be careful to cut losses if it doesn’t look like it will work out. This wasn’t the kind of clean follow through that really gets you excited, but it still counts. Jerry