Jerry Samet
11-15-2016, 06:58 PM
The rally continued today, only it was the recent laggards that were leading. Since the election the New York averages have led, while today the Nasd averages were the strongest. There were rebounds in the big tech stocks that have sold off in the last week. After opening higher the major averages rallied the rest of the session and closed near their intraday trading highs. The COMPQ led today with a gain of 1.10% while the SPX rose .75%. All the major averages finished at or near their intraday trading highs, a sign of support. Volume was lower across the board, so large institutional players were taking a break. Leading stocks rose along with the overall market as the leaders index gained .71% on lower but still above average volume. The index underperformed the major averages today and closed in about the middle of its trading range. The index was also influenced by the at least for today shift in leadership. The chart still looks good. After the advance we have seen in the last week it would be expected to see the major averages give back some ground. That hasn’t happened. The semiconductors and the mid-caps made new highs today while the COMPQ overcame its 50dma. A market that won’t correct after a solid advance wants to go higher. It looks like there will be more strength in a least the short term. Jerry