Market Gains on Thursday

On Thursday,the market opened up and continued higher until 1:00 p.m., then price moved sideways and declined into the close. While the market did not finish the day strong, it did make significant gains. The Nasdaq Composite gained +74 points (+1.77%), the S&P 500 climbed +19 points (+1.13%), and the Dow 30 rose +109 points +0.70%). 

Volume was lighter than Wednesday's, but still above average. Advancing stocks were the clear winners with a 3 to 1 advantage over declining stocks. Up volume beat down volume by 2.7 to 1. There were 172 52-week highs compared to only 78 52-week lows. The Nasdaq closed above its 50-day moving average, but the S&P and Dow are still under their 50 EMAs.

The market is headed into a key test of resistance at or near the 50 EMA. If the market cannot move above the 50 EMA with strong volume, then this would suggest further downside to the correction.  A potential Head & Shoulders top could be forming in the general market. If there is volume is strong on an upside surge, then the correction may come to an end.