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Jerry Samet
01-28-2021, 06:25 PM
The market opened higher today in a rebound from yesterday’s selloff and some good earnings reports after the close yesterday. The major averages rallied to strong gains and even recovered most of the previous session’s losses. The gains didn’t hold and selling came in during the last couple of hours and most of the early gains were lost. All the major averages finished low in their intraday trading ranges. The SPX finished just below the mid-point and the Nasd averages closed near the bottom of their trading ranges. The New York averages were the strongest with the SPX higher by .98%. The COMPQ and the NDX gained .50% and .68% respectively. The futures are slightly lower as of the time of this writing. Volume was lower across the board. It fell 32% on the New York and 10.54% on the Nasd. The lower volume on a rebound day is negative. Leading stocks were higher as well with the leaders index gaining .66% on the day. The index closed in the upper half of its trading range and closed above its important 17dma support level. Volume was lower, showing that there was not heavy buying by large institutional players. The market looked like it was going to have a strong rebound today. Early volume was running ahead of yesterday’s but faded as the day went on. The weak close is negative as selling came in as prices advanced and drove them lower. The lighter volume on a rebound attempt shows that there was less buying pressure today than there was selling pressure yesterday. The leaders index held its important 17dma today. If it breaks below this support level, particularly on high volume, it would be very negative for leading stocks and the overall market. The major averages are holding moving average support levels. If they were to break below these moving averages it would be another warning sign that the rally may be in trouble. There will be no update tomorrow. Jerry