Jerry Samet
10-23-2014, 11:24 PM
The market had a good session today. The major averages opened strong and rose for most of the session until a little late weakness caused them to close off their intraday highs. The COMPQ led the way with a gain of 1.60% while the SPY was higher by 1.23%. All the major averages closed in the upper half of their trading ranges, a good sign. Volume was mixed, higher on the New York and a bit lower on the Nasd. Both of these averages are now comfortably above their 200dma’s and are approaching their 50dma’s, a big improvement in the last few days trading. Leading stocks had a solid day as well with the leaders index higher by 1.09% on the day. Volume was lower than yesterday and slightly above average. The index closed in the lower half of it’s intraday range, so quality growth stocks underperformed the overall market. The index is however at a new closing high and the relative strength line of the index looks good. Today’s action did a lot to improve the picture of the rally attempt. It would have been better if there was stronger volume in both the major averages and the leaders index, but having a second follow through type day so soon after the original one is positive. We now should keep an eye on the 50dma’s of the major averages and the weekly Coppock. If the major averages can break above their 50dma’s, hopefully with conviction, and the weekly Coppock can turn up and confirm the follow through, it will probably mean this rally attempt will have some legs. Jerry