Jerry Samet
08-23-2025, 10:25 AM
The market had a strong session yesterday after a dovish speech from Powell. The major averages opened a bit higher and then took off during the speech. The major averages held the gains for the rest of the day and closed strong. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX gained 1.89% and 1.54% respectively. The SPX rallied 1.52%. Volume was higher across the board, a positive sign. Leading stocks rallied as well the leaders index gained 1.50% on the day. The index closed high in its trading range on higher and just below average volume. The market put in a strong rally yesterday after Powell gave a dovish speech and seemed to signal rate cuts to come. The gains were strong both for the major averages and leading stocks. The leaders index bounced off its 50dma earlier in the week and has rallied back to its shorter term moving averages. Breaking above them would be very encouraging. Volume increased quite a bit as large institutional players were buying stocks. Overall it was a strong session in response to encouraging news. That is good. The question now is if this is just a blip in response to Powell’s speech or it is a move that has legs. That question will likely be answered next week. Jerry