Jerry Samet
12-03-2016, 12:42 PM
The market tried to bounce yesterday after a couple of weak sessions, but it was a fairly timid attempt. After a decline the quality of the bounce is important. After starting out higher the major averages topped out a couple of hours and then gave up most of those gains. They closed with mostly small gains, except for the Dow, which was lower. The COMPQ finished with a gain of .09% while the SPX was higher by .04%. The SOX bounced back 1.30% after the hit it took on Thursday. All the major averages closed in the lower half of their intraday trading range. Volume was lower across the board. Leading stocks were higher as well, but they too produced a fairly weak bounce. The leaders index rallied .21% and closed in the upper half of its trading range. Volume was lower and about average. A lot of damage was done on Wednesday and Thursday, particularly Thursday. Yesterday’s rally attempt didn’t do much to negate that. The action of the next few day will tell us a lot. If there is a weak rally attempt that fails we will likely see lower prices. If there is a strong bounce back with volume behind it then the market rally could continue. Jerry