Jerry Samet
09-11-2023, 06:28 PM
The market put in a solid rally session today. The major averages opened higher and after some selling mostly regained the declines to finish high in their intraday trading ranges. The Nasd averages were the strongest as big cap tech stocks rallied. The COMPQ and the NDX gained 1.14% and 1.19% respectively. The SPX was higher by .67%. Volume was higher across the board, reinforcing the price gains. Leading stocks underperformed. The Leaders index was flat on the day, but some ETFs of leading growth stocks moved higher. The index closed high in its trading range on higher but below average volume. Just when it looks like the market might begin selling off you get a nice rally. The day’s action was strong and the higher volume showed that large institutional players were buying stocks. Most of the major averages regained their 50dma levels. We will now have to see if they can hold above this important moving average. The action today was strong, but I don’t think it changes the fact the rally is under some stress. The leaders index is going sideways and looks like it is building a base. The recent follow through still looks shaky and I believe that we will see lower prices before there is a real strong rally, likely later next month. There is a lot of news this week, from earnings reports to inflation numbers that will affect short term trading. Jerry