Jerry Samet
05-24-2021, 06:28 PM
The market staged a solid rally today. The major averages opened higher and worked their way higher most of the day. Some late selling saw them finish off their highs but still with good gains. All the major averages closed in the upper half of their intraday trading ranges. The Nasd averages led the way as big cap tech stocks were strong. The COMPQ and the NDX rallied 1.41% and 1.72% respectively. The SPX was higher by .99%. The greatest strength was in the semiconductors as the SOX rallied 2.32%. Volume was again disappointing. It was lower across the board, falling 8.19% on the New York and 4.48% on the Nasd. You would rather see a price rally accompanied by stronger volume. Leading stocks were higher as well with the leaders index gaining 1.71% on the session. The index closed high in its trading range and tagged its 50dma at its highs. Volume was lower and well below average. The market continued to rally today, but it continued to be on lighter volume. This shows that large institutional players were not heavy buyers today. The Nasd averages, along with the SOX, overcame their respective 50dma’s today and that is positive. It would have been more encouraging if strong volume were also present. The Nasd averages are working their way back to their old highs. We have seen a double top in the chart. It the Nasd averages can break above their old highs it will wipe out this pattern. If not and they are turned back again there will be a triple top, a very negative pattern. Few individual stocks are breaking out and producing worthwhile gains, so it is a good idea to treat this up move with a good degree of caution. Jerry