Jerry Samet
10-05-2015, 08:38 PM
The market had a strong rally session today. Following strength in the European market the major averages gapped up at the open and worked their way higher for the rest of the day. All the major averages finished at or near their intraday highs with the SPX leading the way with a gain of 1.83% while the COMPQ climbed 1.56%. Volume was slightly lower across the board, so there was not as much buying pressure from large institutional players as there was on Friday. Leading stocks had a strong session as well with the leaders index rising by 2.48% on higher and above average volume. The index closed in the upper half of it’s intraday trading range, a sign of support. The new index made a new high on both a price and a relative strength basis, which is good. The previous index, which was struggling with it’s 50dma broke above this important resistance level. Today’s action was positive and there were several fresh breakouts. The COMPQ is now 1.6% below it’s declining 50dma. All the major averages are in the same position. If the COMPQ were to break above the 50dma with some conviction it would do a lot to improve the picture. Today’s action was good and it is possible that there could be some sort of a short term rally here. The action of the COMPQ at it’s 50dma will tell us a lot. Jerry