Jerry Samet
08-29-2023, 06:35 PM
The market staged a strong rally today and produced a follow through. The major averages opened moderately higher and then rallied pretty much uninterrupted into the close. All the major averages finished high in their intraday trading ranges. The Nasd averages were the strongest with the COMPQ and the NDX gaining 1.74% and 2.15% respectively. The SPX was higher by 1.45%. Volume was significantly higher across the board. Leading stocks were strong as well with the leaders index gaining 3.31% on the day. The index closed high in its trading range on higher and above average volume. It tagged its 50dma but couldn’t get above it. The market rallied hard on weaker than expected economic news and the hopes that the Fed might hold off on more rate increases. All the major averages had strong price increases on higher volume, producing a follow through on all the major averages. It was a solid up day with good action in leading stocks and strong internals. All the major averages also overcame their respective 50dma’s. The last few days were stronger and some short term indicators I look at went flat yesterday and signaled today. We now have to look and see how well confirmed this follow through is. The % E’s are in range and did confirm. There was no Eureka today, but we could get on in the next few days. Right now the Eureka did not confirm. The weekly Coppock is not in a position to signal right now and will not confirm the follow through. Overall this is not a well confirmed follow through and while taking some positions is ok, some degree of caution is warranted. I will try to put together a new leaders index tomorrow and have it ready for the next update. Jerry