Jerry Samet
05-26-2021, 06:35 PM
The market built on its recent positive action with moderate gains today. The major averages opened higher and spent most of the remainder of the session working their way up. All the major averages finished high in their intraday trading ranges. The Nasd averages were stronger with the COMPQ and the NDX gaining .59% and .33% respectively. The SPX was higher by .19%. The greatest strength was in the small and mid-cap stocks with the RUT and the MID gaining 1.97% and .96% respectively. Volume was higher across the board. It gained 7.28% on the New York and 4.17% on the Nasd. It is good to see higher volume as prices advance. Leading stocks had a strong day with the leaders index gaining 2.58% on the day. The index also recovered its 50dma on higher volume and the relative strength line of the index is close to breaking above its 50dma. Volume unfortunately was lower. The market continued to build on its recent gains today and volume was higher. The gains were smaller than yesterday’s but the volume was encouraging. A couple of weeks ago it looked like the market was going to head lower, but recent action has been encouraging. The Nasd averages recently regained their 50dma’s and the leaders index joined them today. The improvement in the relative strength line of the leaders index shows that quality growth stocks have been gaining ground recently. We are in a tough market and meaningful gains are hard to come by. The action in the last few days is encouraging, but we don’t know if it will last. The charts of the Nasd averages are very interesting. The COMPQ must break into new high ground or risk a triple top formation. The NDX must do the same of there could be a head and shoulders pattern forming. A break to new highs would negate both of these chart patterns, but not making new highs would be pretty negative. Jerry