Jerry Samet
02-11-2017, 12:05 PM
The market put in another solid performance yesterday. After opening higher the major averages worked their way up for most of the rest of the session until a little last weakness saw them finish off their highs. The COMPQ was higher by .33% while the SPX gained .36%. Both closed in the upper half of their intraday trading ranges. The small and mid-cap stocks did well with the RUT and MID higher by .75% and .55% respectively. Volume was lower across the board, so there was not as much buying pressure in the advance as you would like to see. Leading stocks were generally higher as well, but the gains were modest. The leaders index was lower by 1.18% on higher and above average volume. The index tagged its important 17dma during trading but held well above this support level. It did however close just below its short term 9dma. The reason for the decline was mostly the large 16.68% decline in UBNT on huge volume after a poorly received earnings report. The relative strength line of the index is starting to lag a bit after it led for a couple of weeks. The market appears to be on solid ground. The Nasd averages are leading the way, but the New York averages are starting to build on the recent break above their consolidation ranges. The MID has also moved into new high ground and the RUT is right at the top of the trading range it has been in for several weeks. If these averages as well as quality growth stocks can continue to move higher, especially if volume kicks in, the market advance will continue in at least the short term. Jerry