Market Analysis and Summary
The major market indexes continued to make constructive progress Friday, supported by a healthy, broad group of high growth leadership. The distribution count fell to 6 days on both, the NASDAQ and S&P 500 and a solid wall of worry remains in place.
The line of least resistance is higher, so continue building 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 fell 0.59% Friday, although volume declined and it closed above logical support.
The Russell 2000 closed 0.05% higher and held up in a relatively tight range above logical support over the last few sessions and is a hair away from reclaiming its 50-DMA.
The S&P 500 held up constructively, in a tight range above its 50-DMA for the 4th consecutive session, as volume on the NYSE picked up slightly.
The DOW bounced at its 50-DMA Friday, finished the session up 0.06% and in the upper half of its range for the day, although volume declined.