Jerry Samet
01-14-2016, 11:26 PM
For the first time since the sell off started at the beginning of the year the market staged a solid rally day. The major averages showed some early weakness but they bottomed out about a half hour into trading and then turned around. They then rallied for the rest of the day until a little late weakness saw them finish off their intraday highs, but still with good gains. The COMPQ led the way up with a gain of 1.97% while the SPX was higher by 1.67%. Volume was higher across the board and above average. This is a good sign that large institutional players were buying. Leading stocks had a good session as well with the leaders index gaining 1.58% on higher and well above average volume. The index closed in the upper half of it’s intraday trading range. The next hurdle for the leaders index will be it’s 50dma. It must clear this resistance level with some conviction before we can even think of the market improving. We were very oversold and due for a rally. We finally got solid action today, but it is only one day and does little if anything to really change the picture. The charts still look terrible and there are almost no stocks out there that you could even consider buying. Until that changes any rally from here is likely to be nothing more than a shorting opportunity. Jerry