Jerry Samet
07-14-2020, 06:19 PM
The market rallied back today in a generally positive session. The major averages opened lower but shortly after that found a bottom and rallied for the remainder of the day. All the major averages rallied into the close and finished at or very near their intraday trading highs, a sign of support. The New York averages were the strongest with the SPX advancing 1.34% on the session. The COMPQ and the NDX were higher by .96% and .82% respectively. Volume was lower across the board. It fell 9.26% on the New York and 8.86% on the Nasd. This is not what you want to see on a rebound from a sell off. Leading stocks were higher as well with the leaders index gaining 1.03% on the day. The index closed near the top of its trading range and right on its short term 9dma. Volume was about flat and above average. After a decline you want to see the quality of the bounce. Today’s was ok but not overwhelming. The major averages had nice advances but they were much less than yesterday’s decline. This was especially true for the Nasd averages as big cap tech stocks continued to struggle. The weak opening made it look like we would see a continuation of yesterday’s selling, but the market found a bottom and rallied nicely. It would have been better if volume was higher, but you can’t have everything. Overall it was a solid bounce back, but we need to see the major averages and the leaders index regain their highs of last week and build on them, hopefully with higher volume. Today’s action helped wipe out some of the damage done yesterday, but we have to see the market continue to advance with conviction. Jerry