Jerry Samet
07-05-2017, 06:21 PM
The market traded mixed today. The tech related averages showed good strength while the New York averages languished and the small and mid-cap tech stocks were lower. The COMPQ and the NDX were higher by .67% and .93% respectively while the SOX rallied 2.08%. The SPX was pretty much flat, with a gain of only .15%. The RUT and MID fell .46% and .35% respectively. All the major averages closed high in their intraday trading ranges, a good sign. Volume was higher across the board from Monday’s level, but that was a half session right in the middle of a holiday weekend. Leading stocks were generally higher, but didn’t show real strength. The leaders index was higher by .62% and closed about in the middle of its trading range. The index closed just above its important 50dma support level. Volume was higher than yesterday but well below average. The index has been pretty much flat lining since the reversal day back on 6/9. It has been tagging its 50dma for over a week and the more times it hits this support level the greater the risk that it will break below it. The relative strength line of the index has already broken below its 50dma. The market appears to be struggling without real leadership. The tech stocks have not recovered and right now the only sector that seems to have any semblance of potential is the financial sector. The Nasd averages must get back above their 50dma’s and the New York averages, which are holding up pretty well, should get into new high ground. This should be done on strong volume to really improve a shaky picture. Jerry