Jerry Samet
10-02-2021, 11:44 AM
The market staged a rally yesterday after recent weakness. The major averages opened higher and after some early selling turned around and rallied for the remainder of the session, finishing with solid price gains. The New York averages were a bit stronger with the SPX gaining 1.15% on the day while the COMPQ and the NDX were higher by .82% and .70% respectively. All closed high in their intraday trading range as buying continued into the close. Volume was mixed. It was lower by 20.12% on the Nasd but was slightly higher by 4.21% on the New York. This is weak compared to the stronger volume we saw earlier in the week. Leading stocks were mixed but generally lower on the day. The leaders index fell 1.14% on the day and the FFTY was off by .53%. The leaders index closed in the upper half of its trading range but made a new intraday low for the move, along with the major averages. Volume was higher and well above average. The market had a moderate bounce yesterday after weak action earlier in the week. The price gains were solid but volume was not really confirming the price action. Large institutional players were not in there buying with anything like the vigor they were selling with earlier. The distribution cluster earlier in the week caused IBD to go to a market in correction call on Thursday. Yesterday’s bounce was to be expected after all the selling earlier in the week, but it didn’t do much to change the overall picture. There has been a lot of selling in the major averages and especially in the leading growth stocks. Yesterday was the first up day and we will have to watch to see if there is further positive action, but it looks like there will be lower prices ahead. Jerry