Jerry Samet
07-19-2022, 06:32 PM
What a difference a day makes. The market was showing signs of at least a mild bear market rally until a reversal yesterday made it look like a no go. Then we got a strong rally today. The major averages opened higher and rallied the rest of the day. All the major averages finished near their intraday trading highs. The Nasd averages led the way with the COMPQ and the NDX gaining 3.11% and 3.13% respectively. The SPX gained 2.76%. Volume was higher across the board. It gained 3.8% on the Nasd and .5% on the New York. Leading stocks had a good session as well with the leaders index gaining 4.01% on the day. The index closed at the top of its trading range on lower and below average volume. Last week the market looked like it was setting up something of a countertrend rally. The market reacted well to bad news and there were Eureka and weekly Coppock signals. The reversal yesterday seemed to kill that, but today’s action seems to have redeemed it. The SPX and the Nasd averages regained their important 50dma’s today on higher volume. This moving average is now the line in the sand support level. Today looked like a strong rally day in a bear market, which it was. It also looks like we could see a mild countertrend rally. I think this will not be a strong rally and is one in which shooting for singles is the best idea. With next week being the biggest earnings week of the season anything can happen, but it looks like the market wants to go higher, at least for now. Jerry