Jerry Samet
09-27-2016, 06:40 PM
The market rebounded nicely today after two sessions of selling. The major averages opened higher and rallied for several hours before leveling off late. All the major averages finished the session at their intraday highs, a sign of support. The COMPQ was higher by .92% while the SPX gained .64%. Volume was higher across the board. This is a positive development as you want to see low volume pullbacks followed by higher volume rallies. This s a sign of accumulation by large institutional players. Leading stocks had a solid rally as well with the leaders index gaining 1.62% on the day. The index closed high in it’s intraday trading range as many high quality growth stocks rallied strongly. Volume on the leaders index rose and was slightly above average. The relative strength line of the leaders index went into new high ground and the price is close to new highs. The fact that relative strength is leading price is encouraging. The New York averages remain below their important 50dma’s and the Nasd averages are just below new high ground. Breaking above these resistance levels is the next step if the market is to continue higher, but the rally appears to be intact. Jerry