closing in the top 5% of the day’s range. In terms of participation the rally was very broad based, with only four of the 200 or so industry groups we follow closing lower on the day.
Total volume confirmed Thursday’s impressive price action with Nasdaq volume jumping 30% higher and NYSE volume up 17%. Total volume came in above the 50-day moving average on both exchanges as well. Market internal were also very encouraging. Advancing volume beat declining volume on the Nasdaq by the highest margin since June 6 with a 6.3 to 1 reading. NYSE adv/decl volume was also impressive at 13 to 1, which was the second highest reading of the summer. With the market already in trend mode, Thursday was another strong accumulation day for a market that is picking up steam.
Per the intraday confirmation alert, we closed out our long position in the Ishares Nasdaq Biotech ETF (NASDAQ:IBB) when it hit the official target price of 140.80. We locked in a 5% move from our entry point and a 2% gain in the ETF Model Portfolio. Although IBB can easily move higher from here we do not mind selling in to strength and moving on to the next trade. The chart below details the entry points and exit. Although our first entry on 8/14 was on reduced share size, the tight price action over the next seven bars allowed us to increase our exposure with a low risk entry point on 8/24.
Due to the breadth of yesterday’s advance our scans did not turn up any setups with low risk entry points. Because of this there are no new official setups for today. We plan to patiently wait for new breakout or pullback setups to emerge next week. As mentioned earlier, the market is picking up steam and the evidence suggests that a meaningful rally is under way. As you know we do not make predictions on the market and we always try to operate with the “trade what you see not what you think” mantra. As of today’s close, the evidence clearly points to a healthy market so we will position ourselves on the long side until conditions change.