Jerry Samet
07-28-2022, 06:34 PM
The market continued yesterday’s strength today. The major averages showed some early weakness but found a bottom and rallied nicely. The New York averages led the way with the SPX gaining 1.21%. The COMPQ and the NDX were higher by 1.08% and .92% respectively. All the major averages finished near their intraday trading highs. Volume was higher across the board. It gained 8.49% on the Nasd and 9.86% on the New York. Leading stocks were generally higher, although the leaders index lagged as it was turned back by its 50dma. It closed high in its trading range right below this important resistance level. Volume was higher and slightly above average. The market continued its recent strength today with solid advances on higher volume. This produced a good accumulation day. The price gains weren’t quite strong enough for a follow through like day, but it was clearly positive action. It looks like we are in at least a short term tradable rally. The recent weekly Coppock and Eureka signals seem to have for told a rally. The passage of the semiconductor bill and expectations that the Fed may not raise rates as much with the latest two GDP reports signaling a recession helped the market. The bottom line now is that the market is saying it wants to go higher in at least the short term. This is still likely a tradable rally in a bear market so there is no telling how far it will go. There is some room in the charts. Play it carefully and stay close to the exits. Jerry