Jerry Samet
11-19-2017, 12:05 PM
The market traded with a somewhat negative bias on Friday. After opening lower the major averages traded in slightly negative territory all day. They all closed low in their intraday trading ranges, a sign of some selling. The COMPQ closed with a decline of .15% while the SPX fell .26%. Volume was very slightly higher on the Nasd, but the decline was too small to qualify as distribution. IBD said volume was lower on the New York, but esignal clearly shows it higher. Depending on who is correct there could have been a fresh distribution day on the New York averages. Leading stocks generally outperformed the overall market with the leaders index gaining .42% on the day. The index made a new high on both a closing and an intraday basis, but it closed in the lower half of its intraday trading range, a sign that there was some late selling. Volume was higher and above average, which is what you want to see, but the index closing in the lower half of its trading range takes a bit of the edge off it. The relative strength line of the index made a new high. You want to see quality growth stocks outperform the overall market. Friday’s action was generally positive. The major averages held most of the strong gains they achieved on Thursday. This is good. It would have been better to see volume lower as the market consolidated gains, but Friday was an expiration day which always causes higher volume. I would say the picture still points to higher prices, at least through the seasonally positive end of the year. That can of course be changed by the actions of Congress on the tax bill, but barring a complete blow up the trend looks like it will be higher, in at least the short term. Jerry