Jerry Samet
02-05-2022, 11:45 AM
After a strong earnings report from AMZN and a stronger than expected employment report the market rallied yesterday. After opening higher the major averages sold off a bit before rallying. A little late selling saw the major averages finish off their highs, but still with solid gains. The Nasd averages led the way with the COMPQ and the NDX gaining 1.58% and 1.33% respectively. The SPX rallied .52% Volume was mixed. It was higher by 5.13% on the New York and lower by 3.31% on the Nasd. Leading stocks were mixed also. The leaders index was about flat with a gain of only .07% on the day. Other ETF’s of leading stocks were lower. The leaders index closed in the upper half of its trading range on lower and below average volume. The positive news yesterday caused a mild rally in the market. The rally attempt is continuing but it doesn’t seem to have much strength. The major averages and the leaders index are still below their moving average resistance levels. AMZN staged a large rally yesterday just as FB had a big sell off on Thursday. The rally attempt is still intact, but it is clearly a struggling rally that is so far producing little progress. You can take positions here, but getting to heavily in is risky as the weak advance we have seen so far could easily reverse. Jerry