Jerry Samet
08-28-2023, 06:25 PM
The market put in a decent rally today on a price basis, but volume didn’t confirm. The major averages opened higher and mostly held the gains during the day. Late strength saw all the major averages finish high in their intraday trading ranges. The COMPQ and the NDX gained .84% and .74% respectively. The SPX rallied .63%. Volume was lower across the board. Leading stocks were higher as well with the leaders index gained 1.11% on the session. The index closed in about the middle of its trading range on lower but still above average volume. The market rallied today, but volume was missing. This showed that large institutional players were not in there buying heavily today. Gains on lower volume are suspect. This continues the recent pattern of advancing prices on lower volume. The major averages are all below their respective 50dma’s. This moving average will provide significant resistance and the major averages must overcome it to have any chance of a rally. The COMPQ at its recent lows was almost 9% below its recent highs. That increases the chance of an intermediate correction. The market will likely work its way lower over the next few weeks, although there could be a rally attempt if there is a follow through. If there is the chances of a successful rally are not good as the weekly Coppock is not in a position to confirm. Jerry