Morning Report – March 19th, 2014

Small cap stocks led the market higher yesterday; in fact, both the Russell 2000 and the S&P 600 closed at 100% of their daily ranges. If you recall, in the March 17 report which was an analysis of Friday’s market action, I made the comment that the S&P 600 market cap HGSI index turned positive in both Force Indexes, and that could be a clue going forward.  It may have just been a lucky observation, but the small caps have been leading the way. Many of the small-cap stocks are semiconductor, and solar stocks which have bounced sharply.


 Even though settlement remains bearish for many of the analysts, we have to go with what we see, and I see very bullish candles for the small-cap stocks and the NASDAQ composite. Once again, the volume was not impressive, but it was slightly higher than the previous day. The NASDAQ remains in its trading range, but it looks like it wants to challenge the recent highs. We saw one of the strongest days for the internals in the NASDAQ composite with advancing issues leading declining issues by a ratio of 3.21 to 1. Read Full Report