Jerry Samet
10-24-2020, 11:37 AM
The market put in an overall positive session yesterday. After early weakness the major averages found a bottom and rallied into the close. All the major averages finished at or very near their intraday trading highs, a good sign. The gains were pretty evenly divided with the COMPQ and the NDX gaining .37% and .25% respectively. The SPX was higher by .34%. Volume was lower across the board. It fell 5.65% on the Nasd and 10.30% on the New York. Leading stocks were higher on the session as well. The leaders index gained .66%. The index closed near the top of its trading range and is sitting right on its important 17dma. Volume was higher but still very light. The market found a bottom and staged a decent rally yesterday. Volume was lighter than the previous session, not what you want to see on a session that saw higher prices. The major averages are so far holding their important 50 day moving averages, which is good. The leaders index is sitting right on its 17dma support level. The major averages and the leaders index must hold these support levels. A breach would be very negative. Right now the rally attempt is still in force, but it looks like a pretty weak rally. With all the uncertainty out there right now the market may well not do much until the election. A disputed election would cause more uncertainty. Right now there are some attractive stocks out there, but a good deal of caution should be shown until the picture is a little clearer. Jerry