The market had a decent bounce after Friday’s decline. The major averages were a little lower at the open but quickly reversed and rallied for pretty much the remainder of the session. Some late buying saw all the major averages finish at their intraday trading highs. The New York averages led the way with the SPX higher by 1.47%. The COMPQ and the NDX gained 1.20% and 1.14% respectively. The greatest gains were in the small caps with the RUT rallying 3.08%. Volume was lower across the board. It declined 20.23% on the New York and 19.55% on the Nasd. This decline was mostly due to the inflated volume on Friday due to the Russel rebalancing. Leading stocks lagged today with the leaders index declining.40%. The index closed high in its trading range and held its 17dma and closed right on its 9dma. Volume was much lower and well below average. The bounce we saw today was overall pretty solid. The lower volume would normally be a problem but Friday’s rebalancing made it difficult to have higher volume. Today’s action helped but we are not out of the woods yet. We need to see the market rally on higher volume and get back to its old highs. We have seen some nasty declines on heavy volume recently and that is a yellow flag. Overall the uptrend is intact, but a couple of good rally days on some real volume would make me feel a lot better. Jerry
Reply With Quote