Market Analysis and Summary
The major indexes held up in a tight, constructive manner over the last couple sessions and leading growth stocks continued to build constructive bases and break out on heavy volume. The distribution count held steady at 7 days on the NASDAQ and 7 days on the S&P 500.
The line of least resistance remains higher. So, as long as the market’s uptrend continues to be supported by a broad base of healthy leadership, it’s okay 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 rose 0.07%, held up in a tight range and closed slightly below recent all-time highs, as volume expanded yesterday.
The Russell 2000 closed 0.25% lower as volume expanded, but held up in a relatively tight range above logical support over the last couple sessions and is a hair away from reclaiming its 50-DMA.
The S&P 500 traded sideways in a tight range, slightly above its 50-DMA as volume on the NYSE declined over the prior two sessions, which is constructive.
The DOW fell a slight 0.10% as volume declined and continued to hold up above its 50-DMA.