Jerry Samet
07-25-2018, 06:53 PM
The market put in a strong session today after yesterday’s reversal. The major averages opened a little higher and after hesitating for a little while rallied the rest of the day to close with solid gains. All the major averages finished at their intraday trading highs, a sign of support. The Nasd averages led the way with the COMPQ and the NDX gaining 1.17% and 1.38% respectively. The SPX was came close by rallying .91%. Volume was mixed, according to Esignal. It was a bit lower on the Nasd and higher on the New York. Leading stocks were strong as well with the leaders index gaining 2.43%. The index closed near its highs of the day and is back above all its short term moving average support levels. Volume was lower than yesterday. You would have preferred to see it higher. The relative strength line of the leaders index also made its way back above its 50dma. We had a surprisingly strong rally today after yesterday’s reversal. The Nasd averages made new all-time highs and the SPX is close to matching them. The strength into the close was a good sign and the higher volume on the New York was encouraging. We seem to have wiped away most of the negative effects of yesterday’s action. The chart of the leaders index is still in a consolidation but the charts of the major averages have clearly moved higher. Today’s action has improved the picture, but a break out of the current consolidation in the leaders index would be very positive. After the close FB came out with a terrible earnings report and the stock is getting killed. That will effect trading tomorrow, especially in the Nasd averages. Jerry