Jerry Samet
10-10-2019, 06:20 PM
The market has been all over the place in the last few days over trade talks. Today the market opened higher and rallied for much of the session. Some selling came in late in the day and the major averages closed with solid gains but off their highs. All the major averages closed in the upper half of their intraday trading ranges, a sign of support. The gains were pretty evenly divided with the COMPQ and the NDX rallying .60% and .65% respectively while the SPX was higher by .64%. Volume was also a positive factor today. It was higher across the board, by 14.79% on the New York and 14.21% on the Nasd. This is the first time in quite a while that higher prices were accompanied by higher volume. Leading stocks were higher as well but underperformed the overall market. The leaders index was up by .32% on the day. The index finished low in its trading range and finished below the 17dma after trading above it. Volume was slightly lower. With trade talks going on the market is bouncing around with every story. Last night the futures were all over the place as story after story came out. There is talk of a small deal that will leave the sticky issues to later. There is a high level meeting tomorrow that will have a large effect on the market. Even a limited deal could generate positive action. Right now the market still seems to be struggling. Today was the first day in a while when higher volume accompanied higher prices. The NDX and the SPX both closed back above their 50dma’s while the COMPQ and the NYA remain below this important moving average. Leading stocks are still not acting well, and this is the ultimate indicator. The market still appears to be unstable and looks pretty risky to me. Jerry