The market took a break today on the holiday. After opening a bit higher the major averages spent the rest of the session working their way lower. The declines were moderate as the COMPQ declined .16% and the SPX lost .18%. After the recent gains this is no big deal. All the major averages closed at their intraday trading lows, but the losses were small so this isn’t much of a concern right now. Volume was lower across the board, a would be expected on the Columbus Day holiday. This is, however, what you want to see after an advance. Leading stocks outperformed the overall market with the leaders index gaining .86% on the day. The index closed in the lower half of its trading range, a little better than the major averages. The index is rising nicely above all its short term moving averages and has risen nine sessions in a row. The volume on this advance has been light, and that is something that must be watched, but the relative strength line of the index continues to make new highs. Overall the market and quality growth stocks are acting well. We should expect a little backing and filling after a solid rally like we have seen in the last couple of weeks. We are coming into the heart of earnings season and the numbers we see will have a lot of effect on the performance of the market, especially for the major tech stocks. We look like we are in good shape now, and a little weakness in here might be a good thing if it sets up another run to new highs. I will be away for a few days. The updates will resume next week. Jerry
Reply With Quote