Jerry Samet
10-21-2017, 12:16 PM
The market rallied nicely yesterday. There was a bit of a divergence between the New York averages and the Nasd averages. After all the major averages opened higher the New York averages took the lead and rallied into the close. The SPX was higher by .51%. All the New York averages finished at their intraday trading highs. The Nasd averages opened higher and spent the rest of the session going sideways. The COMPQ was up by .36% and the NDX gained .27%. Both closed low in their trading ranges. The lesser performance was due to some weakness in the large cap tech stocks. Volume was mixed, lower on the Nasd and higher on the New York. This is generally positive as the greatest volume was in the areas with the strongest gains. Leading stocks were higher on the day, but mirrored the Nasd averages more than the New York. The index gained .74% on the day, but closed low in its trading range. It cleared the short term 9dma and closed right on this now support level, which is good. Volume on the index was higher and above average. This is positive on an up day. The index is sitting right below its recent highs on both a price and a relative strength basis. The market acted well yesterday, much of it likely due to the passage of the budget resolution in Congress. This is the first step in the tax reform process. The charts of both the major averages and the leaders index look solid and even if there is a little consolidation in the very short term the rally looks like it has further to go. Jerry