October ended on a solid note. After early weakness that was expected after a couple of disappointing earnings reports the market quickly found a bottom and rallied into the close. All the major averages finished at or very near their intraday trading highs, a sign of support. The Nasd averages were the strongest with the COMPQ and the NDX gaining .33% and .46% respectively. The SPX gained .18%. All made new all-time highs yesterday. Volume was mixed. It fell 8.36% on the Nasd and rose 4.48% on the New York. Leading stocks were generally higher as well with the leaders index gaining 1.58% on the session. The index closed in about the middle of its trading range on lower and about average volume. The index made new highs on both a closing and an intraday basis. The action of the market was encouraging yesterday. After two disappointing earnings reports from AMZN and AAPL you would have expected a down session. It didn’t happen. That showed that the market reacted to negative news in a positive fashion. This is very encouraging. Both the major averages and the leaders index made new highs as the leaders index cleared its recent consolidation. We are now entering the most seasonally positive period for the markets of the year, this should be supportive. The distribution count remains pretty low. At this point the rally looks like it is on solid ground and barring some really bad news or event the market should rally into the new year. Jerry
Reply With Quote