Jerry Samet
04-22-2025, 06:11 PM
The market had a strong rally today. The major averages opened higher and after bouncing around in positive territory finished strong. All the major averages closed high in their intraday trading ranges. The COMPQ and the NDX gained 2.71% and 2.60% respectively. The SPX rallied 2.51%. Volume was higher across the board. That along with the price gains produced a follow through on all the major averages. Leading stocks were higher as well. The leaders index gained 4.08% on the day. The index closed high in its trading range on higher but below average volume. Just when you think the market is headed in one direction it reverses course. The major averages wiped out yesterday’s losses and rallied strongly on higher volume. This produced a follow through. The possibility of a follow through has been there for a while. The question is if this is something meaningful or just produced by the market’s recent volatility. This follow through is not particularly well confirmed. The weekly Coppock will not confirm and the %Es are at very high levels, above those needed to confirm. There was no Eureka signal today, but there was one on 4/9 and that is close enough to consider it a confirmation. So this follow through got one out of three. You never know in the stock market, but poorly confirmed follow throughs in bear markets have a high failure rate. It s probably ok to test this rally, but be careful. Jerry