Jerry Samet
05-27-2014, 11:19 PM
The market had a strong rally day today. After opening higher the major averages went side ways for most of the session before a late rally allowed them all to close at their intraday highs. This is the second day in a row with closes at the highs. The COMPQ led the was higher with a gain of 1.22% while the SPY was up by .60%. Volume was higher across the board. This was enough for the SPY to clear recent highs, setting up a rally resumption. The COMPQ was up enough for a follow through day so there is a real uptrend. Leading stocks participated in the rally with the leaders index higher by .41% and closing at it’s 50dma. Volume on the index was also higher. Many stocks in the index are broken and I will make a new index when I return. The three indicators we use to confirm follow through days are in good shape. The %E’s have confirmed and the weekly Coppock has flattened out and any strength from here will generate a buy signal. There were several breakouts today and a number of pocket pivots, which is a good sign. It looks like the market is setting up for something of a rally attempt and it is ok to take some positions, but some degree of caution is a good idea. I will be away for a few days, the updates will resume next week. Jerry