Jerry Samet
05-04-2020, 06:30 PM
The market put in an encouraging positive reversal today. The major averages opened lower and went to some solid losses early. They recovered much of those losses and traded mostly sideways until late buying saw them finish strong. All the major averages finished at or very near their intraday trading highs, showing that there was buying into the close. The Nasd averages were the strongest with strength in tech stocks. The COMPQ and the NDX advanced 1.23% and 1.33% respectively. The SPX was higher by .42%. Volume was a bit of a disappointment. It was lower across the board, declining 9.74% on the Nasd and 4.49% on the New York. It would have been better if volume was higher. Leading stocks had a good session as well. The leaders index gained 1.29% on the session and closed high in its trading range. The index is slightly above its short term 9dma. Volume was slightly lower and below average and the relative strength line is close to a new high. The market acted well today. It looked like there would be a continuation of Friday’s weakness, but the market recovered and posted solid gains. The Nasd averages were by far the strongest as tech stocks moved higher. Leading stocks acted well today as the leaders index posted gains in line with the overall market and has a strong relative strength line. The weekly Coppock turned up today and if it closes the week where it is now it will give a signal. This would be a little late this time because of the head of steam it had on the downside due to the sharp selloff. If this happens it will mean that the current rally has more to go and we are likely to see a run for old highs before any retest of the late March lows. The possible weekly Coppock signal along with the solid action in quality growth stocks points to higher prices ahead, at least in the short term. Jerry