Jerry Samet
07-11-2016, 07:39 PM
The market rose for another session today as it built on Friday’s advance. All the major averages opened strong and were generally higher for most of the day. A little late weakness saw the major averages close in about the middle of their intraday trading ranges. The COMPQ had a solid gain of .64% while the SPX rallied .34%. Volume was lower on both the major exchanges, not what you really want to see on a good price advance, but it didn’t change the fact that it was a positive day. Leading stocks had a good session as well with the leaders index higher by .98%. The index finished in about the middle of it’s intraday range and volume was higher than Friday and a bit above average. The index has moved into new high ground on both a price and a relative strength basis,both positive signs. It is good to see quality growth stocks outperforming the overall market as the relative strength line shows. The SPX made new all time highs highs today on both an intraday and a closing basis. I have said that this would bring the thesis that a bear market started last summer into question. That has happened, although the COMPQ still has a little way to go. The question now is weather that action of the last year most the strangest intermediate term correction in an ongoing bull or we are still in a large topping process that just got longer. There is no question that markets around the world are being held up by the most supportive central banks in history and it looks like they can keep markets up longer than most people thought. Eventually the markets will win out, but I have no idea when that will be. The thing right now is that the market looks strong in a least the short term so some progress can be made, although it will likely be modest. I will be away for a few days. The updates will resume next week.Jerry