Jerry Samet
05-05-2020, 06:23 PM
The market put in an overall positive session today. The major averages gapped higher at the open and spent most of the session working their way higher. Late selling came in during the last hour and a good part of the gains were lost, but there were still solid gains. All the major averages closed low in their intraday trading ranges due to the late selling. The COMPQ and the NDX gained 1.13% and 1.09% respectively. The SPX was higher by .90%. Volume was higher across the board. It gained 16.77% on the Nasd and 12.35% on the New York. Leading stocks had a strong session with the leaders index gaining 2.31% on the day. The index closed in about the middle of its trading range and held above its short term 9dma support level. The relative strength line of the leaders index made a new high today, showing that quality growth stocks are outperforming the overall market. Volume was slightly higher. The market acted well today and had strong gains. Some late selling came in and erased some of the gains and made the major averages close low in their trading ranges. That was about the only negative as you would like to see the market close strong on higher volume. The leaders index is very close to a new high and the relative strength line is at new highs. This is encouraging as the market usually doesn’t get into real trouble when quality growth stocks are outperforming. The weekly Coppock moved closer to turning up and barring any real weakness before the end of the week should give a signal. If this happens then the likelihood is that the market will make a run for the old highs before it goes back and retests the recent lows of late march. I will feel more comfortable at the end of the week, but the market is acting like it wants to go higher. Jerry