Jerry Samet
08-01-2022, 06:43 PM
The market took a break today after strong action last week. The major averages opened lower and then showed some strength as the major averages reached positive territory. They then sold off, possibly on news that Pelosi would go to Taiwan tomorrow. The major averages closed with modest losses as the COMPQ and the NDX fell only .18% and .06% respectively. The SPX declined .28%. Volume was lower across the board. It fell 6.88% on the Nasd and 2.37% on the New York. Since the counter trend rally gained steam last week I created a new leaders index to better reflect the top performing stocks right now. The index has 21 stocks in 18 different industry groups. I think it is a good cross section of leading stocks right now. I have included a text file with the contents of the new index. It is very strong as you would want in a new index and had a gain today of .68% on higher volume. The market acted well today as there was only a small decline after the recent strong advance. The market may have closed higher if not for the news on Pelosi, but the action was still encouraging. The small decline came on lower volume, showing that large institutional players were not heavy sellers today. There is also a lot of accumulation under the surface, which is good. Right now it looks like this bear market rally has some room to go before it tops out. The 200dma’s of the major averages are the next big resistance level. This doesn’t guarantee that they will get there but it is possible. You have to keep in mind though that this is a counter trend rally in a bear market and that the ultimate lows have not likely been seen. Jerry