Jerry Samet
03-25-2020, 06:28 PM
The market opened higher in a continuation of yesterday’s strength. There was a little selling but that was brief and prices rallied nicely as the major averages produced solid gains. It looked like the rescue package would pass quickly. There was late selling as a snag appeared and the major averages closed well off their highs. All the major averages finished in the lower half of their intraday trading ranges. The New York averages closed in positive territory with the SPX higher by 1.15%. The Nasd averages lost all their gains and closed lower. The COMPQ and the NDX declined .52% and 1.11% respectively. Volume was higher across the board. It gained 6.51% on the Nasd and 9.40% on the New York. Leading stocks were up as well with the leaders index higher by 1.15% on the day. The index closed just below the midpoint of its trading range on volume that was lower but still above average. The market continued its rally attempt today and produced solid gains early on hope of the rescue package passing. A late snag slowed it down and erased most of the gains, but that will likely be resolved quickly. There is further evidence that we have put in a short term bottom and completed the first down leg of the bear market. Two shorter term indicators I look at both turned up. The A’s minus E’s turned up yesterday and the Summation Index turned higher today. These are not perfect but they have been pretty effective lately in flagging short term moves. If we rally from here the charts of the major averages don’t give us much help. The water fall decline shows few logical resistance areas all the way up to the declining 50 and 200dma’s. The news on the coronavirus will be the primary driver of market action, but the market is trying to stage a rally now. Jerry