Market Analysis and Summary
The major indexes finished yesterday’s session modestly mixed as they continued to hold up constructively near recent, all-time highs. Volume declined across the board, so the distribution count remains unchanged at 5 days on the NASDAQ and 3 on the S&P 500. More importantly, the market’s uptrend continues to be supported by a broad base of healthy leadership.
As long as the major indexes hold above their 50-DMA’s and the action of the market’s leading growth stocks remains healthy and constructive, continue to buy leading growth stocks as entry points develop. Remember though, “buying right” is critical, especially in the current environment. Don’t buy a stock more than 2% past its pivot point and make a habit of eliminating laggards and taking at least partial profits on extended names.
The NASDAQ’s rally stalled and finished the session below mid-range, despite closing 0.04% higher. Fortunately, volume declined and it continues to hold up near recent all-time highs.
The Russell 2000 found support at its 50-DMA, bounced and finished the session up 0.38% as volume declined and continues to look healthy and constructive.
The S&P 500 continued to drift lower in a tight range, just above its 21-DMA and slightly below recent all-time highs as volume on the NYSE declined, which is constructive.
The DOW continued to drift lower in a tight range, just above its 10-DMA and slightly below recent all-time highs, as volume declined.