Jerry Samet
10-07-2020, 06:28 PM
The market put in a solid rally today. After opening higher the major averages rallied for most of the remainder of the day. The strength continued into the close and all the major averages finished at their intraday trading highs, a good sign. The strength was pretty evenly divided with the COMPQ and the NDX gaining 1.88% each. The SPX rallied 1.74%. Volume was again the issue. It was lower across the board, falling 16.41% on the New York and 10.40% on the Nasd. This shows that large institutional players were not heavy buyers today. Leading stocks rallied as well with the leaders index gaining 1.91% on the day. The index closed in about the middle of its trading range on extremely low volume. The market recovered pretty much all of yesterday’s late sell off on hints that more negotiations on a stimulus package might take place. The price gains were impressive and the consistent strength was encouraging. The market is acting like it wants to go higher, but the only real issue remains volume. It was lower again today. Yesterday’s volume was very high so the comparison was tough, but the pattern of lower volume rallies continued. The market again flirted with a follow through on both the COMPQ and the SPX. It would add a lot of conviction to this rally attempt if one of these other averages would join the Dow in issuing a follow through. The market continues to tease us by coming so close. Overall it looks like the market is trying to rally further and will likely go higher in at least the short term. Jerry