Market Analysis and Summary
The gap down and sharp sell-off immediately following yesterday’s open, found its lows within the first thirty minutes of the session and then rallied for the rest of the day. This is classic bull market action. The major indexes are all holding up constructively near recent all-time highs and leading growth stocks are healthy and broad. Recent breakouts continue to make worthwhile progress and there are plenty of new, constructive bases still forming. So, continue to initiate long positions as entry points develop and as always, be very selective and have the discipline to wait for the perfect setup. Waiting to enter a position at the “optimal spot,” is often the difference between getting shaken out of a big leader, or not.
The NASDAQ shook out constructively below its 10-DMA and finished the session just slightly below recent, all-time highs.
The Russell 2000 found support at its 50-DMA, bounced and close in the upper half of its range for the day as volume declined. Overall, this is constructive action despite finishing the session lower.
The S&P 500 shook out constructively below its 10-DMA yesterday. Its action was indicative of strength and support, despite meeting the definition of distribution on a technical basis.
The DOW found support at its 50-DMA, bounced and finished the session near its high for the day as volume expanded. Overall, this is constructive action despite finishing the session down 0.11%.