Market Analysis and Summary
The technical health of the major indexes continued to improve over the last couple sessions. They all finished modestly higher across the board yesterday, although volume declined on the NASDAQ and NYSE. While higher volume would have been ideal, their price action more than made up for it. A distribution day fell off the NASDAQ, bringing its count down to 6 days, while the S&P 500’s stands at 4.
More importantly, as the uptrend in the general market has shaped up and reasserted itself over the last few weeks, it has been supported by a broad base of leading growth stocks. As long as leading growth stocks continue to act well and the uptrend in the general market remains intact, we would continue to build long positions as entry point present themselves, however, slowly and with the utmost selectivity.
As always, remember that “buying right” is critical, especially in the current, general market environment. 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 rose 0.27% on declining volume as it continued to push its way through resistance yesterday.
The Russell 2000 rose 0.09% as volume declined and finished the session slightly below recent all-time highs.
The S&P 500 rose 0.10% as volume on the NYSE declined and finished the session slightly below recent all-time highs.
The DOW rose 0.17% as volume declined and finished the session at a new all-time, closing high.