The market put in what I would consider another encouraging session today. In a pattern similar to yesterday’s the major averages opened lower then rallied to about unchanged. They then sold off again only to find support and rally into the close. All the major averages closed about unchanged but at or very near the top of their intraday trading ranges, a sign of support. Volume was lower across the board, declining 2.89% on the Nasd and 5.07% on the New York. Leading socks again outperformed the overall market with the leaders index gaining .52% on the day. The index closed in the upper half of its trading range and volume was lower and below average. This is a new high on both a price and a relative strength basis. The market has mostly consolidated for the last three sessions and has been doing so in a pretty constructive manner. For the second day in a row the market was facing losses but managed to rally to recover them before the close. The fact that all the major averages have closed at their highs in the last two days suggests that there is support under the market. We are also seeing quality growth stocks act better in recent trading sessions. The leaders index and other indexes of quality growth stocks have been outperforming the overall market, as can be seen in the relative strength line of the leaders index. These are positive developments. The major averages have been consolidating for the last few days and that is ok after a move into new high ground. We will have to see how they break from this consolidation, but right now the odds seems to favor the upside. Jerry
Reply With Quote