Jerry Samet
01-16-2020, 06:14 PM
The market rallied solidly again today. The major averages opened with good gains and spent most of the remainder of the session holding them. Near the close buying came in and the market rallied to its highs. All the major averages finished at their intraday trading highs, a sign of support. The Nasd averages were a little stronger with the COMPQ and the NDX gaining 1.06% and .99% respectively. The SPX rallied .84%. Volume was lower across the board. It fell 5.99% on the New York and 6.64% on the Nasd. This was the only negative in today’s action. Leading stocks participated in the upside action with the leaders index gaining .71% on the day. The index closed high in its trading range and above all its short term moving averages. Volume was higher and about average. The market continued to rally today. All the major averages made new closing and intraday trading highs. The small and midcap stocks outperformed the major averages and are making new 52 week highs and are close to new all-time highs. This is positive confirmation. About the only negative action we say today was the lighter volume on new highs. You want to see new highs on higher volume. The market is acting very well and there are few red flags out there. The only real concern I have now is that the market has moved quickly and is ahead of itself. Markets can however go higher than expected so this alone is not a reason to sell. It may however be a reason to be careful committing new money to the market. Things look good right now and the market looks like it wants to go higher. Jerry