Jerry Samet
10-25-2022, 06:38 PM
The market continued its rally today with solid action in all the major averages. They opened higher and worked their way up the rest of the session. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX gained 2.25% and 2.10% while the SPX rallied 1.63%. Volume was mixed but little changed. It gained 3.26% on the Nasd and fell .36% on the New York. Leading stocks were higher as well but underperformed the overall market. The leaders index gained .35% on the day. It closed in about the middle of its trading range on lower but above average volume. The market continued its positive action today as the rally gathered strength. There were a few more breakouts today as the major averages are approaching their 50dma resistance levels. This is the real next test for the market and it will come soon. The SPX is just a fraction below this important moving average while the COMPQ is just 2% below it. This will be a big test for the rally. If the market can overcome this resistance it could move nicely higher. After the close the earnings reports from GOOGL and MSFT were not well received and the futures are selling off. That doesn’t mean it will hold over night. Bond yields dropping and the dollar falling also helped today, but keep an eye on the major averages action at their respective 50dma’s. Jerry