Market Analysis and Summary
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The major indexes rallied as volume expanded across the board yesterday. The NASDAQ finished the session at a new, all-time closing high, while the S&P 500 finished slightly below. The DOW stalled just shy of 22,000 and closed mid-range. Meanwhile, the Russell 2000 powered back through its 200-DMA on Wednesday and closed just shy of its 50-DMA yesterday. This is a big improvement from the beginning of the week. The distribution count now stands at 7 days on the NASDAQ and 6 on the S&P 500.
More importantly, the market’s uptrend continues to be supported by a broad base of healthy leadership. Leading Medical/biotech shares have been at the forefront of the rally over the prior couple sessions. Not to mention, there are plenty of constructive bases also forming in the widespread technology sector, as well as many others.
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 when the general market starts to whip around and you’re trying not to get shaken out of a big leader. 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 rallied 0.95% on heavier volume and finished the session at a new, all-time closing high.
The Russell 2000 reclaimed its 200-DMA Wednesday and then closed a hair shy of reclaiming its 50-DMA yesterday as volume expanded.
The S&P 500 rose 0.57% as volume on the NYSE expanded and closed slightly below recent, all-time highs.
The DOW’s rally stalled at 22,00 yesterday and was only able to muster a mid-range close as volume picked up from the prior session.