Jerry Samet
07-15-2017, 12:07 PM
The market staged another solid up session yesterday. After opening higher the major averages rallied pretty much for the rest of the day. The tech stocks seem to have come back to leadership as the Nasd averages led the way. The COMPQ and the NDX rose .61% and .77% respectively while the SOX gained 1.30%. The New York averages were higher also with the SPX gaining .47%. All the major averages closed very close to their intraday trading highs, a good sign. Volume was lower across the board and below average. You would like to see higher volume on a rally day, but many times there is lighter volume on Fridays in the summer. Leading stocks put in a strong session as well with the leaders index rallying 2.03% and closing high in its intraday trading range. The index made new highs on both a closing and an intraday basis. Volume was lower and below average, just like the major averages. The relative strength line of the index is also advancing strongly and in new high ground. I have included the chart of the old index for comparison purposes, but that index also made a new high yesterday, a good sign. All the New York averages have moved to new highs and the Nasd averages are very close. The leadership that carried the markets for most of the post-election rally seems to be reasserting itself. The fact that quality growth stocks are outperforming the overall market is another positive sign. It would have been better if there was more volume on yesterday’s advance, but Fridays in the summer often have low trading. It seems that the selloff we experienced was just another short term blip as the market is reasserting itself. The Nasd averages need to get into new high ground as well, but that looks like it will happen soon. The outlook looks positive now and being invested is the place to be. Jerry