Jerry Samet
01-31-2022, 06:37 PM
The market continued Friday’s positive action today. The major averages opened slightly higher and rallied from there. All the major averages closed near the top of their intraday trading ranges. The Nasd averages were very strong with the COMPQ and the NDX gaining 3.41% and 3.29% respectively. The SPX rallied 1.89%. Volume, according to Esignal , was lower across the board. It fell 9.92% on the New York and 2.25% on the Nasd. I saw that IBD said volume was higher across the board and called a follow through. Again, I don’t know where they are getting their volume data. Leading stocks were strong as well with the leaders index gaining 2.41% on the day. The index closed near the high of its trading on lower but slightly above average volume. The market rallied again today with strong price action in the major averages and leading stocks. The market again saw strength into the close and finished high in its trading range. Quality growth stocks had a good session as well with strong action in the leaders index and FTFs of leading stocks. Volume seems to be an issue today. I use Esignal for volume and they have excellent data. IBD said volume was higher today while Esignal said it was lower. The result is that IBD said there was a follow through today. If there was a follow through it looks pretty weak. It was not confirmed by any of the three indicators that I use. The weekly Coppock will not confirm. The Eureka did not signal and the %E’s are at 32%, much to high. This follow through is poorly confirmed and is unlikely to produce a tradable rally. I would treat it with a good deal of caution. Jerry