Jerry Samet
03-05-2018, 06:59 PM
After opening slightly lower the market turned around and staged a solid rally. After hitting its lows about an hour into trading the major averages bottomed out and rallied for the rest of the session. The COMPQ was higher by 1.00% while the SPX gained 1.10%. All the major averages closed at or very near their intraday trading highs, a sign of support. Volume was a problem. It was lower across the board. You would like to see strong volume on a day where there were good price increases. Leading stocks had a good session as well with the leaders index gaining 1.63% and closing near its highs of the day. The index traded the entire session above its short term 9dma support level and made a new high on both a closing and an intraday basis. Volume was higher than on Friday and was above average. It is good to see prices move into new high ground on higher and above average volume. The market built on Friday’s reversal and moved nicely higher. The New York averages are still below their 50dma’s and must get back above this resistance level. The Nasd averages are comfortably above this important moving average. The price action today was encouraging, but it didn’t have heavy volume to back it up. Quality growth stocks are outperforming the overall market, and that is good. But we need to see the major averages break into new high ground on heavy volume to let us know that the market is back in solid rally mode. I will be away for a few days. The updates will resume next week. Jerry