The market finally put in a relief rally today with the major averages posting solid gains. The major averages gapped up at the open and spent most of the rest if the session holding on to the gains. Late selling saw the major averages finish off their highs but still in the upper half of their intraday trading ranges. The gains were pretty evenly divided with the COMPQ and the NDX rallying 2.51% and 2.49% on the day. The SPX gained 2.45%. Volume was lower across the board, as you would expect after an expiration day on Friday. Leading stocks rallied as well with the leaders index gaining 1.92% on the day. The index closed in the lower half of its trading range on lower but above average volume. The market finally had a decent rally today. After last week’s drubbing some kind of snap back is expected. It could last for a few days but will likely not amount to much more than that. Usually you like to see higher volume on a rally day, but you are not going to beat an expiration day. The market may get over a couple of short term moving averages that are not far away, but the 50dma would likely be major resistance. A rally here would be more of an opportunity to unload any positions that have not already been sold. Jerry
Reply With Quote