Jerry Samet
01-29-2022, 12:13 PM
The market finally staged a rally that lasted yesterday. The major averages opened a little lower but quickly found a bottom and rallied most of the remainder of the session. Late strength saw all the major averages finish near their intraday trading highs. The Nasd averages were the strongest with the COMPQ and the NDX gaining 3.13% and 3.22% respectively. The SPX gained 2.43%. Volume was lower across the board. It fell 3.70% on the New York and 4.32% on the Nasd. Leading stocks also did well with the leaders index rising 3.41% on the day. The index closed near the top of its trading range on higher and above average volume. The market finally held on to some gains on Friday, in contrast to recent sessions. The gains were solid and there was a strong close. Volume was lower, which shows that large institutional players were not buying heavily yesterday. The gains were good, but there are few good set ups out there. Yesterday’s action did little to change the overall picture. The SPX is right below its 200dma while the Nasd averages are well below this important moving average. Breaking above this resistance on volume would be a positive sign. Right now yesterday’s action did little to change the overall direction of the market. It would take more days like this to alter the outlook and we are still in a downturn and we should see lower prices ahead. Jerry