Jerry Samet
05-21-2014, 10:48 PM
The market had a solid up session today. After opening higher the major averages rallied most of the day and finished at their intraday highs. The COMPQ led the way again with a gain of .85% while the SPY was up by .81%. Volume was pretty weak on the day. It was about flat on the Nasd and lower on the New York. This again continues the recent pattern of rallies on lower volume than declines. Large players are just not participating. Leading stocks climbed along with the overall market with the leaders index higher by .68%. There was mostly green in the individual components, but again not a lot of buying pressure. Volume on the index was lower and well below average. The leaders index and the COMPQ are looking a bit similar. Both are trading below short term moving averages and will see resistance at a declining 50dma. The relative strength lines of both are acting weak. The COMPQ is right below it’s declining 50dma. It must break convincingly above this important moving average to really improve the market’s picture. The New York averages have been in a trading range for many weeks now and should break into new high ground with volume for any rally attempt to have a chance to succeed. There isn’t a lot going on right now and I know it may be beginning to sound like a broken record, but the sidelines are the best place to be until things get going in one direction or another. Jerry