Jerry Samet
06-05-2021, 11:58 AM
The market staged a solid rally yesterday. The major averages opened higher and spent the rest of the session working their way up. All the major averages finished near their intraday trading highs. The Nasd averages led the way with the COMPQ and the NDX gaining 1.47% and 1.78% as tech stocks were strong. The SPX was higher by .88%. The greatest strength was in the semiconductors with the SOX gaining 2.39%. Volume was again an issue. It fell across the board, dropping 23.60% on the New York and 19.28% on the Nasd. This is not what you want to see on a strong price advance. Leading stocks were higher as well with the leaders index gaining 1.84% on the day. The index closed high in its trading range and volume was slightly lower. The index remains below its 50dma. The market had a nice rally yesterday. All the major averages closed strong and the New York averages are fractionally below new highs. The Nasd averages regained their 50dma’s that they lost on Thursday. The issue yesterday was again volume. It was considerably lower. This may be partially due to higher volume on Thursday due to the meme stocks, but it continues a pattern of low volume rallies and higher volume selloffs. The market is trying to work its way higher and the New York averages will likely make new highs. The Nasd averages have further to go and them making new highs would break the negative patterns developing in their charts. IBD went back to a rally resumes call, but they did this recently and it didn’t last long. The market seems to want to go higher, but the risks are high and positions should be taken with this in mind. Jerry