Jerry Samet
07-25-2016, 07:09 PM
The market took a break again today as the major averages have spent the last few days consolidating recent gains in a pretty constructive manor. The major averages opened lower and were in negative territory all day. A little late strength saw them close off their intraday lows, but none got back into positive ground. The SPX lost .30% while the COMPQ was off only .05%. The SPX closed in about the middle if it’s trading range while the COMPQ finished near the top of it’s trading range. Volume was higher across the board. This produced distribution on the New york averages while the loss in the Nasd averages was to small to qualify as distribution. In either case the total distribution count is still pretty light. Leading stocks were lower as well with the leaders index posting a mild decline of .33%. The index finished high in it’s intraday trading range and the low of the session was above the 9dma. The index is rising in an orderly fashion above it’s short term 9dma support level. In this respect it looks like the major averages. They too are rising nicely above their short term 10dma’s. The action today did little if any damage to the charts of the major averages and the leaders index. The current rally is on solid ground and while earnings reports may cause some volatility it appears the market wants to work it’s way higher. Jerry