Jerry Samet
12-21-2023, 06:27 PM
The market rebounded today after yesterday’s reversal. A good piece of the prior day’s losses were recovered. The major averages opened higher and after bouncing around much of the day saw a late rally and all the major averages finished near the top of their intraday trading ranges. The COMPQ and the NDX gained 1.26% and 1.23% respectively. The SPX rallied 1.03%. Volume was lower across the board. Leading stocks rallied as well with the leaders index gaining 1.47% on the day. The index closed high in its trading range on lower and below average volume. After a decline like we saw yesterday the quality of the bounce is very important. It gives you a clue if there is more to come. Today’s bounce was pretty good, but it lacked a couple of items. There was lower volume today, meaning that large institutional players were not as heavily involved today as they were yesterday. Also while much of the losses were recovered, not all of them were and all the major averages had inside days. The overall picture remains positive and the rally is in good shape. Despite yesterday’s reversal the charts of the major averages and the leaders index look good. I don’t think we have seen the top of this rally yet. Jerry