The market had a snap back rally today and regained much of yesterday’s declines. The major averages opened higher and worked their way up for most of the remainder of the session. Late selling came in and the major averages finished off their highs, but all still remained in the upper half of their intraday trading ranges. The Nasd averages were a little stronger due to positive action in tech and big cap stocks. The COMPQ and the NDX gained 1.25% and 1.40% respectively. The SPX rallied 1.05%. Volume was lower across the board. It fell 8.22% on the Nasd and 3.28% on the New York. Leading stocks were higher as well with the leaders index gaining 1.49% on the day. The index closed low in its trading range on much lower and below average volume. The market bounced today after yesterday’s decline. The price gains were solid, but the volume wasn’t there. The lower volume showed that there was less buying pressure today than there was selling pressure yesterday. It would not be surprising to see the major averages and the leaders index make an attempt to rally back to their respective 50dma’s. This would be a real line in the sand. If they could regain this important moving average, especially on strong volume, it would be a positive sign. Failure would be very negative. Today’s action really didn’t do a lot to improve the overall picture and a defensive posture is still called for. Jerry
Reply With Quote