Jerry Samet
05-14-2020, 06:31 PM
The market had a nice positive price reversal today. The major averages opened lower and went to real losses in what liked like a continuation of the selling of the prior two sessions. The major averages found a bottom pretty quickly and rallied for the remainder of the day. All the major averages closed at or very near their intraday trading highs, a sign of support. The COMPQ and the NDX were higher by .91% and 1.05% respectively. The SPX gained 1.15%. Volume was a disappointment today as it was lower across the board. It fell 7.36% on the New York and 6.84% on the Nasd. Leading stocks were higher as well, but gained less than the overall market. The leaders index was higher by .56% on the day. It closed high in its trading range and bounced well off its short term 9dma. Volume was a bit lower and below average. The market acted pretty well overall today. The early selling got a little unnerving but the major averages recovered nicely and rallied to solid gains. The only real negative today was the volume. You want to see stronger volume on a rebound and a positive reversal. It was still a good session overall and the next few days will tell us a lot. There are some warning signs right now, but also some strong positives. A move higher in the next few days, particularly on heavy volume, would go a long way toward building the bull case. Jerry