Top 10 Report – October 16, 2019

Market Insight

The NASDAQ and S&P 500 have exhibited constructive strength since last Friday’s gap up. On Monday, both major indexes held up in a tight range on light volume and then they both gapped up and exploded higher yesterday as volume expanded, which is constructive action.

The distribution count is still on the high side at 7 days on the S&P 500 and 6 days on the NASDAQ. However, the major indexes have pushed through significant resistance over the last few days are now trading just slightly below recent all-time highs, except for the Russell 2000, which continues to lag.

More importantly, the number of constructive bases forming in the retail, medial/biotech, building/related, semiconductor and software groups has been expanding. Also, the line of least resistance remains to the upside.

So, continue to keep track of the strongest stocks in the strongest groups, with superior fundamentals. Set your alerts and be ready to initiate some long exposure, as entry areas present themselves.

The Indicies

The NASDAQ gapped up at the open, rose 1.24% on heavier volume and closed near session highs as it continued to make constructive progress back towards all-time highs.

The small-cap Russell 2000 rose 1.19% on heavier volume and closed back above its 50-DMA, but fell a hair shy of reclaiming its 200-DMA, as it continued to lag the other major indexes.

The S&P 500 gapped up at the open, rose 1.00% as volume on the NYSE expanded and closed near its high for the day, as it continued to make constructive progress back towards all-time highs.

The DOW rose 0.89% on heavier volume and closed near its high for the day, as it continued to make constructive progress back towards all-time highs.



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October 16, 2019

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