Jerry Samet
03-03-2016, 10:47 PM
The market had another constructive session today. Like yesterday the major averages traded around unchanged for the first half of the day until some consistent strength in the last half of the session took all the major averages to their intraday trading highs at the close. The gains were modest, with the SPX gaining .35% while the COMPQ was higher by .09%, but the late strength was encouraging. When markets close strong it is a sign of future strength. Volume was higher across the board and above average on both exchanges, showing that large institutional players were supporting the market. Leading stocks, for the most part, took a breather today. The leaders index was lower by .52% today and volume was lower and well below average. The index closed high in it’s intraday trading range and although it traded below it’s short term 9dma today it rallied to close above this moving average. The index has been flat the last three day as it consolidates it’s recent advance in a constructive manor, although the relative strength line is pulling back. The market appears to have a bid under it. It has tried to pull back early the last couple of days only to see buyers come in and support it. There is still a scarcity of attractive stocks to buy, but it looks like the market wants to go higher in at least the short term. Jerry