Jerry Samet
02-26-2014, 07:03 PM
The market tried to rally early, but couldn’t hold on to most of it’s gains. After the major averages looked early like we might get a rally day(the COMPQ was up almost a half of one percent) an afternoon sell off erased the gains. A last hour rally allowed the major averages to close in positive territory, but the gains were miniscule. The COMPQ was up .10% while the SPY was statically flat. Volume was up across the board, but only slightly on the Nasd. All the major averages closed near the bottom of their intraday ranges, and it looks like we had a stall day on the COMPQ. Leading stocks continued to do well as the leaders index rallied .63% on slightly lower but still above average volume. The index is acting very well as it set new highs today on both a price and a relative strength basis. The major averages and the leaders index are all above even the short term moving averages. While all the major averages have consolidated in the last three days, quality stocks have continued to move higher. When these stocks lead the market higher it is more likely that the major averages will rise to catch up than it is the leaders will roll over. Jerry