Market Analysis and Summary
The NASDAQ and S&P 500 closed slightly below their 50-DMA’s again Friday. Fortunately, volume declined across the board, leaving the elevated distribution count unchanged at 9 days on the NASDAQ and 6 on the S&P 500.
Fortunately, leading growth stocks continued to consolidate in a healthy and constructive manner to end the week. As long as the market’s leadership continues to act constructively this week, it is likely that we will see the market indexes reclaim their major moving averages and ultimately resume their up trends.
Continue building long positions as entry point present themselves, however, slowly and with the utmost selectivity. As always, remember that “buying right” is critical, especially when the general market starts to whip around and you’re trying not to get shaken out of a big leader. Don’t buy a stock more than 1-2% past its pivot point and make a habit of eliminating laggards and taking at least partial profits on extended names.
The NASDAQ gapped up at the open and rallied for the first 45 minutes of the day, but then rolled over, sold off into the close and finished the session below its 50-DMA, although volume declined.
The Russell 2000 rallied 0.26% as volume declined and finished below its long-term 200-DMA for the 7th consecutive session.
The S&P 500 stalled and closed below its 50-DMA again Friday, despite closing 0.17% higher as volume on the NYSE declined.
The DOW stalled at its 21-DMA and finished the session near its low for the day despite closing 0.14% higher on declining volume.