Jerry Samet
08-17-2015, 06:25 PM
The market sold off at the open on news of a weak Empire State manufacturing report. The major averages bottomed out in the first half hour and rallied for the rest of the session. They all closed at or near their intraday highs. The COMPQ gained .86% while the SPX rose .52%. Volume was higher across the board, but Friday’s low volume provided an easy comparison. The increase in volume today was very small, a bit disappointing on a good sized rally day. Leading stocks gained as well with the leaders index outperforming the overall market by gaining 1.01%. Volume was a bit higher than Friday, but still very light. The index regained it’s short term 9 and 17dma’s, but the light volume showed that there was not much conviction on the part of market participants. The SPX also regained it’s important 50dma, but again light volume put a question mark on the day’s price action. Reversals like we saw today are usually positive, but given the market’s recent action more is needed to improve the picture. Jerry