Market Analysis and Summary
The major indexes continued to grind higher yesterday. Even the Russell 2000 rejoined the rest of the bunch and reclaimed its key 50-DMA. Volume picked up slightly across the board, but still finished below average. Not exactly the overwhelming volume we’d like to see on a day the NASDAQ finishes at a new all-time closing high. The distribution count now stands at 5 days on both, the NASDAQ and S&P 500. A day fell off the NASDAQ’s count due to time.
The rally continues to be supported by all the market’s leading industry groups, which continue to behave in a healthy and constructive manner. So, continue to build long positions as entry points develop and be persistent in your process of eliminating laggards and taking at least partial profits on extended names. Remember, “buying right” and maintaining a lean and mean portfolio is your number one defense and what ultimately allows you the ability to sit still, when the general market environment becomes volatile.
The NASDAQ rose 0.28% as volume expanded and finished the session at a new all-time closing high.
The Russell 2000 rose 0.78% and closed back above its 50-DMA, although volume declined slightly.
The S&P 500 rose 0.29% as volume on the NYSE expanded and reclaimed its 10 and 21-DMA’s.
The DOW rose 0.33% as volume expanded, but remains stuck below short-term resistance.