Market Analysis and Summary
The Russell 2000 joined the NASDAQ back above its 50-DMA yesterday, the S&P 500 fell just shy and the DOW has just a bit more to go. The NASDAQ and Russell 2000 also closed up through their short-term downtrend lines, while the S&P 500 and DOW remain below. Volume declined slightly on the NASDAQ, while it fell slightly on the NYSE. If the market’s leadership can continue to build constructive bases and move higher from here, the odds are that the current divergences on the major indexes will resolve themselves to the upside. The distribution count now stands at 5 days on both, the NASDAQ and S&P 500, which is tolerable.
The overall health and breadth of leading growth stocks remains in good shape. Assuming things continue to improve as we make our way through earnings season, we could see quite a few of these stocks set up and break out. Notwithstanding any unpredictable geopolitical events, we would consider initiating long positions as entry points develop. However, be very selective and have the discipline to “buy them right.” Remember, having the opportunity to buy a stock “exactly right,” at a possible inflection point in the general market as we do now, makes all the difference. So pay close attention to the leaders and make sure your alerts are set and ready to go.
The NASDAQ rose 0.92% and finished the session at a new all-time closing high, although volume declined ever so slightly.
The Russell 2000 rose 1.24% as volume expanded a tad and reclaimed its 50-DMA and declining tops trend line.
The S&P 500 rose 0.76% as volume on the NYSE expanded slightly, but fell a hair shy of reclaiming its 50-DMA and declining tops trend line.
The DOW rose 0.85% as volume expanded, but fell short of reclaiming its 50-DMA and declining tops trend line.Click Here for All of Our Actionable, Leading Stock Setups.