Jerry Samet
05-22-2014, 11:27 PM
The market opened higher today and was in positive territory most of the session. The COMPQ led the way with a gain of .55% while the SPY was higher by .24%. The major averages closed off their intraday highs but in the higher end of their trading ranges. Volume was mixed, lower on the New York and slightly higher on the Nasd. The COMPQ closed above it’s 50dma on higher but still below average volume. This is positive action and the first accumulation day in a while. Leading stocks rallied as well with the leaders index rising by .94% on slightly lower and below average volume. The index has been in a mild up trend for about a week now but there has not been a single day of above average volume. The action today was the most positive we have seen in a couple of weeks. The SPY remains in a consolidation just below the highs that would trigger a technical rally resumption. The COMPQ cleared it’s first hurdle by closing above the 50dma on higher volume. It has done this before so the next step is to follow through on today’s action. If it can’t hold the 50dma then today would likely be a flash in the pan and we would move lower. Jerry