Jerry Samet
06-29-2016, 07:13 PM
The market continued it’s rebound today with the major averages opening sharply higher and gaining strength through out the session. The COMPQ finished with a gain of 1.86% while the SPX rallied 1.70%. Both closed at or very near their intraday trading highs, a sign of support. Volume improved over yesterday’s levels. It was higher on the Nasd and a bit lower on the New York. Both were above average. This is a better volume signature than yesterday. Leading stocks were higher as well with the leaders index gaining 1.80%, about in line with the overall market. The index has now put some space between itself and it’s 50dma and is sitting on it’s declining 9dma. Volume did not cooperate as it was well below yesterday’s level and below average. The two rally days are on much lower volume than the two previous down sessions. This is not the pattern you would like to see. The major averages have regained much of what they lost after the vote last week. The COMPQ is coming up against both it’s 50dma and 200dma, which are very close together. The SPX has cleared it’s 200dma but remains below it’s 50dma. They both must clear these resistance levels if this rally attempt is to go much further. Volume was better today as it was higher on the Nasd, but there must be strong volume as the major averages break these resistance levels, if they can, to show that large institutional players are coming into the market. Jerry