Jerry Samet
02-18-2017, 01:56 PM
The market acted well again yesterday. After a little early weakness the major averages bottomed out a couple of hours into trading and started moving higher and some late strength saw all the major averages finish at their intraday trading highs. It is a sign of support when buying comes in late and markets close at their highs. The Nasd averages led the way and made new all-time highs with the COMPQ higher by .41% and the NDX up by .45%. The New York averages lagged a bit with the SPX higher by .17%. The semiconductors were again strongest with the SOX gaining .57% and making a new high. Volume was mixed. It was lower on the Nasd and according to Esignal higher on the New York. IBD showed it lower on the New York as well, but Esignal had it clearly higher. Leading stocks showed modest gains as well with the leaders index gaining .16% on the day. The index closed high in its trading range and above all its short term moving averages. The index traded below its 17dna during the day but rallied to close above this important support level. The index continues to consolidate its recent advance in a constructive manner. It has been trading in a tight flat range for the last week and a half and volume has been mostly below average. This is constructive action. Volume was lower than Thursday, which is what you want to see during a consolidation. The market is acting pretty well right now. There was a good advance and the major averages and leading stocks are holding the gains well. You would expect to see a pullback or at least a consolidation after the rally we have seen. A market that won’t sell off after an advance is usually a market that wants to go higher. Jerry