Jerry Samet
04-20-2015, 06:38 PM
The market rallied back today and reversed most of Friday’s losses. After gapping up at the open the major averages rallied for about an hour and a half and then held it’s gains by trading in a tight range for the rest of the session. The COMPQ led the way higher with a gain of 1.27% while the SPX rallied by .92%. All the major averages closed at their intraday highs. Volume was lower across the board. This would be somewhat expected because Friday was an expiration day, but it also showed less buying by large institutional players today than there was selling on Friday. It also continued the recent pattern of declines on higher volume than on rallies. Leading stocks rallied as well with the leaders index climbing 1.54% on lower volume than Friday. The index closed near it’s intraday high and just a bit above the 9dma. This means that the index is back above all it’s short term moving averages. I said in my last update that the kind of news that caused the market to decline on Friday has been quickly reversed recently, and that happened again. There were few fresh breakouts today, but quality growth stocks, while not producing strong gains are holding up pretty well. The market continues to work it’s way higher and there is some money to be made, but it is a grudging advance and one that it is difficult to make worth while progress in. Jerry