Jerry Samet
06-02-2022, 06:44 PM
The market put in a strong rally today. After opening a little lower the major averages quickly found a bottom and rallied pretty much into the close. The price gains were solid with the Nasd averages leading the way. The COMPQ and the NDX gained 2.69% and 2.75% respectively. The SPX rallied 1.84%. Volume was lower across the board. It fell 4.25% on the Nasd and .99% on the New York. Leading stocks had a good day but underperformed the overall market a bit. The leaders index was higher by 1.86% on the day. The index closed high in its trading range on lower and slightly below average volume. The market put in an encouraging session today, although volume was lacking. There was some negative news from MSFT and some weaker than expected employment numbers. The market overcame these factors and staged a good gain. The lower volume was disappointing, but overall the day was positive. The leaders index is rising above its short term 9dma and that is good. The major averages are coming up to their declining 50dma’s. This will be the real test for the rally. If the major averages can break above this resistance they could rally up to their 200dma’s. If the major averages get up to their 50dma’s and even if they fail there the charts would certainly look like this was a counter trend rally that ended the second down leg of the bear market. The 50dma is the real key. If the major averages rally to this resistance and fail it would signal the start of the third, and hopefully last, leg of the bear market. We will have to see how it plays out. The employment report comes out before the open tomorrow. Jerry