Jerry Samet
07-18-2019, 07:20 PM
The market opened weak today and it looked like there would be another negative session. The declines were building and then after about two and a half hours of trading the market reversed higher and rallied into the close. An interview with the Vice Chairman of the Fed was taken as dovish and the market’s expectations of a half point cut in interest rates at the end of the month over a quarter point cut rose considerably. All the major averages finished at their intraday trading highs, a good sign. The New York averages were a little stronger with the SPX higher by .36%. The COMPQ and the NDX gained .27% and .19% respectively. Volume was higher across the board. It was up by 2.45% on the New York and 7.40% on the Nasd. It is encouraging to see higher volume on a positive reversal. Leading stocks were higher as well with the leaders index rallying .66% The index closed high in its trading range and held above the short term 9dma support level. Volume was higher and the highest in almost two weeks. Today turned into a positive session after it looked early like there would be a third down day in a row. It shows how much of a news driven market we are in and how much influence the Fed really has. The market bottomed out before the interview that that kicked the rally into a higher gear. The fact that we got higher volume on a positive reversal in prices is an encouraging sign. We have had a little weakness in the last few days but little real damage was done. Futures are up after MSFT came out with a good earnings report. The rally is intact and higher prices ahead are likely. Jerry