Jerry Samet
05-08-2021, 11:48 AM
After a much weaker than expected employment report the market rallied from the open. The final gains were pretty evenly divided With the COMPQ and the NDX gaining .88% and .78% respectively. The SPX was higher by .74%. The New York averages finished at their intraday trading highs while the Nasd averages closed in the lower half of their trading ranges. Volume was lower across the board. It fell 10.97% on the New York and 12.76% on the Nasd. You would rather see higher volume as the major averages rally. Leading stocks were generally higher as well with the leaders index gaining 1.87% on the day. The index closed in about the middle of its trading range on slightly lower volume. It also held its 17dma and the relative strength line bounced off its 50dma. The market reacted well to the weaker than expected employment report. The market expects that interest rates will not be raised and the stimulus will keep flowing. The market closed with solid gains and the New York averages made new all time highs. The Nasd averages gave up some of their gains but still closed with good gains. The weaker close of the Nasd averages was a little worrisome but overall the price action was encouraging. The real issue was the volume. It was lower across the board and this shows that large institutional players were not heavy buyers yesterday. This is in contrast to the higher volume on recent down days. It is a confusing market right now, but it looks like the New York averages are acting well while the Nasd averages lag a bit. If they can make new highs it will improve the picture quite a bit. Jerry