The market had a solid session today. The major averages opened a bit lower but quickly found a bottom. The major averages rallied most of the remainder of the day and finished strong. They all finished high in their intraday trading ranges. The COMPQ and the NDX gained .55% and .61% respectively. The SPX rallied .58%. Volume was a lot higher across the board. Leading stocks gained ground as well. The leaders index rallied .54% on the day. The index closed high in its trading range on lower and below average volume. The market put in a solid session today and built on its recent gains. The weak open and strong close is encouraging and the high volume reinforced the price move. The rally is acting pretty well right now. It does however have some real resistance to overcome soon. All the major averages are fast approaching their declining 50dma’s. This would normally be some difficult resistance and may well be. There is a lot of news this week. Tomorrow there is a GDP report early and MSFT and META report after the close. On Thursday AMZN and AAPL report after the close. On Friday there is the employment report before the open. These are all potentially market moving events. If the market likes them it could provide the fuel to drive the major averages above their 50dma’s. That would be very positive. If the major averages are turned back at this important moving average, the rally would be in trouble. We will likely know more by the end of the week. Jerry
Reply With Quote