Jerry Samet
02-22-2017, 05:56 PM
The market took a break today after yesterday’s rally. The major averages opened slightly lower and pretty much stayed there for the entire session, ending little changed. The COMPQ was off by .09% while the SPX fell .11%. All the major averages closed at or near the top of their intraday trading ranges, a sign of support. Volume was lower across the board, just what you want to see when the market is resting after an advance. Leading stocks were mixed to lower as well with the leaders index declining .40% on higher and above average volume. Most of this was caused by a 7.04% decline in PZZA on huge volume. The index finished high in its trading range and held all its moving averages. The market is acting well. It is showing solid gains and holding them. Today’s action is positive in that it held virtually all the gains of yesterday on lower volume. The market is probably extended in the very short term, but it is showing little inclination to sell off. That usually means it will go sideways and let its important moving averages catch up. Jerry