Jerry Samet
04-22-2014, 11:19 PM
The market had it’s most positive session since hitting it’s low last week. The major averages opened higher and held their gains the entire session until a little late weakness saw them close a bit off their highs. The COMPQ again led the way up with a gain of .97% while the SPY was higher by .41%. The strongest of all was the small caps as the RUT rose 1.16%. The key to the day’s action was volume. It came in higher across the board for the first time in the last few days, which shows there was some buying interest by large players, although it would have been better if it was above average. Leading stocks did well also with the leaders index gaining .88% on higher but still below average volume. The chart of the index is improving but none of the last four up days were on above average volume. You would to see some up volume spikes. We may be forming the right side of a base in the index and it has regained all it’s short term moving averages. The next real hurdle for the COMPQ will be the 50dma. If it can get above this important moving average with some conviction it will be a positive sign. The New York averages are very close to their recent highs and going above them would trigger a technical rally call. We have seen so many of these fail recently it will be hard to get to excited if it happens again. It will take a legitimate follow through day that is well confirmed by the three major confirming indicators for me to have any real confidence that an up move is sustainable. Jerry