2/07/2023T Indexes “POP” Higher w/ strength: Nasdaq +0.9%,S&P500 +1.3%, Volume Higher for both.
THE MARKET’s MESSAGE: Market shows broad UPWARD strength in 2023
On Tuesday, the Nasdaq and S&P500rose significantly with higher volume to earn MAJOR ACCUMULATION days designations. Both major indexes closed very near the top of their days’ ranges. Higher volume added strength to make them Major Accumulation days.
The Nasdaq spent the last 4 days dancing with 12,000, ending above it on Tuesday. Notable:
>>>Since the beginning of 2023, the Nasdaq had only one distribution days, January 18. (A Distribution day has higher volume but a drop in price.) And the Nasdaq’s “angleof attack” (shown by the upward sloping blue line I have added to this Nasdaq chart.I am not concerned about a couple of down days (on Friday and Monday) when I see their volume was lower both days.
When I see we are about 5 weeks into the new year, and the Nasdaq is already up 15.7%, I am amazed! Some years only earn that much.
Even though Friday and Monday were down days, I am not discouraged about the current Uptrend. I suspect those two days were simply some modest (look at the lower volume) profit taking. Sometimes the numbers speak for the indexes.
As for Tuesday, Major Accumulation days for the Nasdaq and S&P500 while the DJIA just missed its Major day by rising less than 1%. But for the quieter DJIA, a 0.8% rise is a nice upward step.
The rising market strength shows up in the growth of “A” and “B” ratings over the last 5 weeks from 59% to today’s 65%.
We’ve talked about the strength of the Nasdaq as shown in the table below. Notice the Green highlights in the Price column. A green highlighted price means it is the highest so far in this 20 days. Yes! The MARKET ACTION table shows how consistently the 2023 market is rising…. And so is your portfolio, I hope!
On the MARKET FACTORS table below, the only red is at the bottom – showing how far the major indexes are compared to their end of 2021 highs.
>>>>> BOTTOM LINE: This market continues to rise, showing strength – I hope you are “riding the rise”and grinning as much as I am!
See you tomorrow. Call me if you have a question. Charlotte Hudgin, The Armchair Investor. (214) 995-6702
Wishing you, "Many happy returns!"