Jerry Samet
04-18-2016, 05:55 PM
The futures were showing a decline in the market last night and early this morning on news that oil producers were not able to come to a deal to cut output(what a surprise). The major averages opened lower, but not as much as the futures indicated. Just ten minutes into the session the major averages turned higher and rallied the rest of the day as oil prices recovered. There was strength into the close with all the major averages showing decent gains and finishing at their intraday highs. The COMPQ gained .44% while the SPX rose .65%. All made new highs for the move and the DOW finished above 18,000 for the first time since last summer. Volume was lower across the board, but only slightly down on the Nasd. This shows that large institutional players were not buying heavily. Leading stocks rallied as well, but slightly less than the overall market. The leaders index was up .46% on the day and closed in about the middle of it’s intraday range. The index is sitting right on a confluence of it’s short term 9dma and 17dma. It is important for it to hold this important support level and it would be good for it to break above the consolidation it remains in, despite the major averages going to new highs for the move. This is shown in the leaders index relative strength line continuing to trend down. The market digested it’s gains for only two days before it started higher again. It shows the power of the Central Banks as more printed money seems to be finding it’s way into the stock market. The rally is intact and the market appears to want to go higher. Jerry