Market Climbs for 6th Day in a Row

Last week's Wednesday report noted that the Nasdaq had bounced off its 200 day moving average and the "market's attempt at a correction reversal" had begun. Over the ensuing days, the market rose on weak volume. Today, volume was strong, and the market closed up for the 6th consecutive day. 

Better-than-expected earnings in several stocks likely helped to drive the upside move in the market. The Nasdaq ended the day up +39 points (+0.41%) and the S&P gained +7 points (+0.41%). The Dow rose +65 points (+0.40%). Advancers beat decliners by a 5-to-2 margin; up volume led down volume by 7-to-3. Breadth was strong and closed at +1,423 (above +1,000 is strong). The only negative was a mild sell off in the last hour of the day.

Market strength is mixed when comparing the Nasdaq and the S&P. The Nasdaq's high of the day reached its 50 EMA but closed below it. The S&P has closed above its 50 EMA for 4 consecutive days. Today's market action continued the current upswing in the general market, but the price/volume action was not emphatic enough to end the correction.

Today's Strong Sectors: Consumer Discretionary, Financials, Healthcare

Tomorrow's Economic Reports: New home sales, crude inventories