Market Analysis and Summary of Leading Growth Stocks
The NASDAQ and S&P 500 have yet to resolve their recent divergence. However, the major indexes have continued to hold up in a constructive manner over the last couple of sessions and more importantly, leading growth stocks are in solid shape. It’s possible we’ll see some volatility surrounding the open tomorrow, depending on how the market reacts to the storm news overnight and the employment numbers at 8:30 am EST.
The distribution count currently stands at 4 days on the NASDAQ and 6 days on the S&P 500 and should be regarded with caution, although we would continue to place the most emphasis on the overall health and action of the market’s leading growth stocks.
The line of least resistance remains higher, so continue to buy high quality, leading growth stocks as entry points present themselves. Hone in on the best of the best and have the discipline to wait for exact entry points, maintain tight sell stops, take profits in extended names and eliminate laggards. That way, you are always well positioned for future volatility, no matter the direction.
The NASDAQ fell 0.17% as volume declined and continues to hold up in a tight range above its 10 and 21-DMA’s, which is constructive.
The Russell 2000 fell 0.17% as volume declined and is holding up in a relatively tight range above its 50-DMA, which is constructive.
The S&P 500 rose 0.05% as volume on the NYSE declined and finished the session below its 50-DMA.
The DOW fell 0.07% as volume declined and finished the session below its 50-DMA.