Jerry Samet
03-02-2022, 06:31 PM
The market bounced back today with solid gains. The market opened little changed but when Powell gave his testimony in Congress the market took off. The gains in the major averages were pretty evenly divided with the COMPQ and the NDX rallying 1.62% and 1.70% respectively. The SPX was higher by 1.86%. All the major averages finished high in their intraday trading ranges as buying continued into the close. Volume was an issue as it was lower across the board. It fell 12.65% on the Nasd and 6.67% on the New York. Leading stocks had a strong session as well. The leaders index gained 3.84% on the day on lower and below average volume. The market rallied today when Powell said he would propose a 25 basis point increase at the next meeting instead of 50 basis points. He also indicated that there may be fewer hikes this year due to the Ukraine situation. This gave fuel to a rally and the market pretty much recovered yesterday’s losses. The market seems to be bouncing back and forth based on news stories, and that is a tough market to navigate. There is a lot of volatility and that can produce a follow through. There almost was one today but the volume was lighter. If one comes we will have to see how well confirmed it is. The weekly Coppock is showing a slow down in its rate of decline and a strong rally could turn it up. If that happens it would strengthen the possibility that a follow through would produce a tradable rally. We will have to wait and see, but right now the important moving averages still provide resistance. Jerry