Jerry Samet
02-04-2017, 11:51 AM
The market had a solid rally yesterday after the employment report before the open came in stronger than expected. The major averages gapped higher at the open and held those gains the rest of the session. The New York averages led the way as the Nasd averages were negatively impacted by a 3.54% decline in AMZN. The COMPQ gained .54% while the SPX was higher by .73%. The greatest strength was in the small and mid-cap stocks with the RUT and MID gaining 1.50% and 1.29% respectively. All the major averages finished trading at their intraday trading highs, a sign of support. Volume was lower across the board, a sign that large institutional players were not heavy buyers yesterday. Leading stocks were strong as well with the leaders index rallying 1.42% on lower and slightly below average volume. The index made new highs on both a closing and an intraday basis and closed high in its trading range. It is also nicely riding its short term 9dma into new high ground. The relative strength line of the index also made new highs and is looking very strong. It is positive when quality growth stocks lead the market higher. It was a very positive session as the New York averages are back above their recent consolidations and are close to new high ground. The Nasd averages are rising above their short term 10dma’s. The only negative yesterday was that volume did not confirm the move. It would have been better if it had, but it was a Friday, and volume often trails off on the last day of the week. The action of the overall market and leading stocks is looking good and it appears that the market wants to work its way higher. Jerry