Jerry Samet
06-03-2017, 12:28 PM
The market continued its solid rally yesterday. After opening higher the major averages rallied for the rest of the session and all closed at their intraday trading highs, a real sign of strength. All the major averages made new all-time highs. Volume was lower across the board, but it was above average on the Nasd. This is not unusual on a Friday in the summer as many market participants leave early. Leading stocks were strong as well with the leaders index higher by 1.74%. It closed high in its trading range and made new highs on both a closing and an intraday basis. Volume expanded nicely and was higher than Thursday and well above average. The relative strength line also made a new high, confirming the price action of the index. The fact that quality growth stocks are leading the market higher is a very positive sign. The action of the market yesterday and all last week was encouraging. Quality growth stocks are acting well and the overall market is following. Large cap tech stocks continue to be where the greatest strength is as the NDX and the SOX gained 1.12% and .99% respectively. The New York averages along with the small and mid-cap stocks are lagging. Many of the groups that led early in the rally after the election have fallen behind in recent weeks and months. You have to be in the right stocks and groups to take the most advantage of recent higher prices, but the overall action is good. The distribution count is moderate and the rally is on solid footing. It appears that higher prices are ahead. Jerry