Jerry Samet
01-31-2017, 05:40 PM
The market had something of a positive reversal today. After another weak opening the major averages sold off and it looked like there would be another negative session. All the major averages had significant losses when with about two hours left in the trading day they all started to rally. All the earlier losses were made up and most of the major averages closed with small gains. The Nasd averages led the way with the COMPQ finishing with a small gain of .02% while the SPX lost .09%. The small and mid-cap stocks were the strongest with the RUT and the MID gaining .70% and .28% respectively. All the major averages finished at the top of their intraday trading ranges, a sign of support. Volume was higher across the board and above average on both exchanges. This shows that large institutional players were active participants today. Leading stocks also reversed higher today with the leaders index finishing the day with a gain of .23%. The index closed near its intraday high and held support at the short term 9dma. The index is still consolidating after making new highs last week, but it is doing so in a pretty constructive manner. The relative strength line of the index also made a new high. Today’s action was encouraging as the market seems to have regained its footing after early losses. The New York averages are about at the top of the consolidation ranges they just fell back into yesterday. A break back above them would be very positive. The Nasd averages are above their short term moving averages and are acting pretty well. If the market can build on today’s reversal over the next few days the rally would be on solid footing. Jerry