Jerry Samet
10-07-2015, 11:19 PM
The market opened higher today and by about two hours into trading lost all the gains and was in negative territory. New buying came in and the major averages climbed the rest of the session and closed with solid gains. All the major averages finished at their intraday highs, a sign of strength, and volume was higher across the board. The COMPQ gained .90% and the SPX was up by .80%. This showed that there was buying by large institutional players. Leading stocks had a good session as well with the leaders index rallying 1.76% on much higher volume. The index closed at a new high on both a price and a relative strength basis. The spike in volume was high and was not the result of one stock having a big session, there were many components of the index that had large volume increases. The previous index is still stuck at the 50dma. There seems to be a bid under the market and today’s action was encouraging. The late strength showed that there are buyers out there. The SPX closed just below it’s 50dma and the COMPQ is 1.2% below this important moving average. If they can break above this resistance level the market will have a chance to move higher. Jerry