Jerry Samet
06-28-2017, 06:10 PM
The market pretty much reversed what it did yesterday. After opening higher the major averages worked their way up for the rest of the session. The COMPQ was higher by 1.43% and the SPX rallied .88%. The stocks and sectors that were hardest hit yesterday did the best today. All the major averages closed at their intraday trading highs, in a mirror image of yesterday. Volume was slightly lower than yesterday, not what you want to see on a rebound day. Positive action is higher volume on up days and lower volume on down days. Leading stocks showed the same action as the overall market. The leaders index gained 2.09%, almost exactly what it lost yesterday. The index bounced off its important 50dma and closed at its intraday highs. Volume was about flat from yesterday. The index remains below its short term moving averages. After a sell off you want to see a strong bounce. The price action today was good, but volume wasn’t there to back it up. Financial stocks were strong again today and that sector may be returning to leadership. It has been harder to make progress in a portfolio in the last few weeks than it has been in the last few months. Weather this represents a top or rotation it is generally not good for canslim type stocks. We need to see both the major averages and quality growth stocks move higher on strong volume to show that the market is solidly in rally mode. Jerry