Jerry Samet
07-30-2022, 11:30 AM
The market completed the week and month on a strong note. The major averages opened higher and after a little selling rallied into the close. All the major averages finished near their intraday trading highs. The Nasd averages were the strongest with the COMPQ and the NDX gaining 1.88% and 1.81% respectively. The SPX rallied 1.42%. Volume was lower across the board. It fell 3.38% on the Nasd and 4.9% on the New York. Leading stocks were higher as well with the leaders index gaining 1.78% on the day. The index closed high in its trading range on lower volume. It finished just below its 50dma. The market continued its rally with all the major averages again posting a strong up day. The number of attractive stocks is increasing which is another good sign. The charts of the major averages are showing more room for advancement before resistance is hit so this counter trend rally may have more to go. Remember that this is a rally in a bear market so the final lows have likely not been seen, but it is an opportunity to make some progress before it tops out. I was unable to put together a new leaders index after the last follow through, but the weekly Coppock and the Eureka signals that occurred in the last couple of weeks have improved the picture. The monthly Coppock on the COMPQ went negative this month and will go negative on the INDU and SPX in the next month or two. That could set up a monthly Coppock buy signal late this year or early next year, signaling the start of a new cyclical bull market. I will try to put together an updated index with the current leaders over the weekend. Jerry