Jerry Samet
04-08-2014, 11:04 PM
The market had a snap back rally today after three days of declines, but it wasn’t that impressive. The COMPQ led the advance with a gain of .81% while the SPY was up by .38%. They both closed near their intraday highs, but the size of the gain compared with the large declines of the last few days was not inspiring. Volume was also lower across the board and was about average on the session. This shows that institutional players were not heavy participants even though the SPY bounced off it’s 50dma. Leading stocks rallied on the day as well, but it wasn’t an impressive advance either. The leaders index rose .78% on lower volume, but it was well above average. The next hurdle for the index will be it’s now declining 17dma. It must get above this important moving average to have any chance of regaining it’s strength. Overall today’s action was not that encouraging as the gain was small and on lower volume. In order to get more positive the COMPQ will have to regain it’s 50dma and the leaders index it’s 17dma with conviction. Until that happens the short term(and maybe longer) trend is lower. Jerry