Jerry Samet
02-06-2018, 06:25 PM
After yesterday’s sell off we were looking for a rebound today. We didn’t get it early as the major averages opened lower and set new lows for the decline. After bouncing around for a while the major averages staged a late rally that that saw them all close at their intraday trading highs. The Nasd averages led with the COMPQ and the NDX higher by 2.13% and 2.62% respectively. The SPX gained 1.74% on the session. The Nasd averages regained their 50dma’s while the New York averages remain below this critical moving average. Volume was higher and well above average across the board. This is what you want to see on a rebound. Leading stocks were higher as well with the leaders index rallying 2.41% on the day and closed high in its trading range. The index closed right on its 50dma and volume was higher and well above average. After a decline you look to the quality of the bounce to try to get a feel for weather the worst is over or not. It looked like there would not be much if any bounce today, but the late action helped a lot. The market closed at its highs of the day and volume was higher and well above average. This is cause for some optimism. The New York averages must also regain their 50dma’s. It is too early to tell is the worst is over and the market can work its way back to its old highs, but today was a pretty good start. Jerry