Market Analysis and Summary
The major indexes all finished Friday’s session at or near, new all-time highs and continue to be supported by robust leadership. The distribution count fell to 4 days on the NASDAQ and held steady at 4 days on the S&P 500, which is manageable.
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.
Stay closely in tune with market rotation and remember, “buying right” is critical. Don’t buy a stock more than 1-2% past its pivot point and get into the habit of eliminating laggards and taking at least partial profits on extended names.
NOTE: Check when a company is due to report EPS, before initiating a position. These dates change frequently and sometimes at the last minute, so double and triple check to be sure.
The NASDAQ finished the session 0.04% lower, but closed near its high for the day and just a hair below recent all-time highs, as volume declined.
The Russell 2000 opened at all-time highs Friday, but almost immediately failed and sold off for the rest of the day, ending the session with a bearish engulfing pattern. Fortunately, volume backed off a tad and it closed only slightly below recent all-time highs.
The S&P 500 finished the session 0.04% lower, but closed near its high for the day and just a hair below recent all-time highs, as volume on the NYSE expanded, which is constructive.
The DOW fell 0.15%, but finished the session near its high for the day and just a hair below recent all-time highs, as volume expanded.