Jerry Samet
02-22-2014, 11:02 AM
The market opened higher yesterday and all the major averages were in positive ground. The major averages spent the rest of the day selling off and finished the session at the lows. This was a sign of weakness, but there was not much real damage done. All the major averages remain near their highs and above all their important moving averages. Volume was mixed on the day in an unusual session. Nasd volume rose, as would be expected on an expiration day, but New York volume fell .03%(according to esignal). The SPX was down .19% on the day, so a distribution day was avoided by a hair. The COMPQ was off only .10%, not enough for distribution. Leading stocks treaded water also with the leaders index rising an almost imperceptible .04% on the day. Volume was lower and just slightly above average. This shows there was little selling pressure in quality stocks even after Thursday’s large gains and the relative strength line of the index made a new high. Overall both the major averages and the leading stocks are acting well and are at or near their highs. Stocks are generally reacting well to earnings reports and news. The rally remains on solid ground and the long side is the place to be. Jerry