The market held up pretty well today after yesterday’s strong rally. The major averages opened lower and declined for a couple of hours before a rally occurred and took them into positive territory. Some late selling caused the gains to be lost, but the declines were contained. The Nasd averages finished just above the midpoint of their intraday trading ranges while the New York averages closed just below their mid-point. The COMPQ and the NDX declined .25% and .30% respectively. The SPX lost .22%. Volume was lower across the board, which is what you want to see when prices pull back after an advance. Leading stocks held up well with the leaders index showing a small gain of .15% and finishing in about the middle of its trading range. Volume was about the same as yesterday and the relative strength line made a new high. Overall today’s action would have to be considered supportive. The major averages recovered early losses and closed with only a small decline compared to yesterday’s advance. The decline in volume is also a good sign as it shows that there was not a lot of selling. The follow through of yesterday is still intact. Yesterday I mentioned two stocks to watch as leaders for this rally attempt. One of them, YETI, had a tough day. After reporting earnings it had what can only be described as a spasm. It rallied hard to new highs and then reversed and sold off 16.15%, destroying its recent breakout. The stock is also a component of the leaders index. Jerry
Reply With Quote