Jerry Samet
02-27-2014, 11:03 PM
The market had a solid up day today with the major averages opening higher and rallying most of the day. They all finished near their intraday highs, which is a positive sign. The Nasd averages led the way with the COMPQ up .63% while the SPY was higher by .49%. All the Nasd averages made new multi year highs on the day while the SPY had a new closing high, but slightly missed on an intraday basis. Volume was lower across the board, which is not what you want to see. When the major averages make new highs you want to see heavy volume to confirm that large players are participating. Leading stocks, while there were some acting well, mostly took a breather today. The leaders index was flat on the session with a loss of .01%. Volume on the index was very low today, which is good because you want to see low volume when the index pauses after the solid gains of the last few days. It shows that few market participants are selling. The market is a bit extended after it’s recent advance and we could see a consolidation or small pull back, but both the major averages and the leading stocks are acting well and the distribution count is not at worrisome levels. The rally is still on solid ground and we should see higher prices in the near term. Jerry