Jerry Samet
05-14-2022, 11:08 AM
The market staged a solid relief rally yesterday, at least on a price basis. The major averages opened higher and after a little selling worked their way up most of the remainder of the session. They all finished near the top of their intraday trading ranges. The Nasd averages were the strongest with the COMPQ and the NDX gaining 3.82% and 3.70% respectively. The SPX rallied 2.39%. Volume was lower across the board. It fell 12.85% on the Nasd and 18.2% on the New York. Leading stocks had a solid session as well with the leaders index gaining 4.08% on the day. The index closed high in its trading range on lower and below average volume. The market staged a relief rally on Friday after significant declines earlier in the week. It looked like a pretty standard relief rally in a bear market. There were strong price gains that you usually see in big up days in bear markets. Volume was missing, and that suggests that large institutional players were not heavy buyers in yesterday’s up move. If this attempted up move has any legs than both the major averages and the leaders index could try to rally into their declining 50dma’s. Any rally here would look like the completion of the second down leg of this bear market. That would be good as most bear market have three down legs. That would mean we would be a considerable way through this bear market. Nothing is ever certain in the stock market, but it looks like that is what is playing out. Jerry