Jerry Samet
08-06-2022, 10:07 AM
The market put in an overall encouraging performance yesterday. The major averages opened lower after the employment report came in stronger than expected. This raised fears that the Fed would be more aggressive in raising rates. The major averages sold off hard at the open and quickly found a bottom and started higher. All the major averages finished high in their intraday trading ranges. The New York averages were stronger with the SPX declining only .16%. The COMPQ and the NDX were lower by .50% and .78% respectively. Volume was lower across the board. It fell 9.08% on the Nasd and 2.18% on the New York. Leading stocks had a good session with the leaders index gaining 1.75% on the day. The index closed high in its trading range and made a new high. Volume was lower but still well above average. The action yesterday was encouraging. A lot f this rally was based on hope that the Fed would not be a aggressive in raising rated if the economy was weakening. The strong jobs report put a dent into that idea. We are in a bad news is good news, and also the reverse, environment. The good news from the employment report caused a big early decline, but the market recovered most of the losses before the close. The small and mid-cap stocks actually had solid gains. The recovery of early losses and strong close is a sign of support as the major averages closed high in their trading ranges. Lower volume showed that large institutional players were not selling stocks heavily. All of this shows that the current counter trend rally is still on solid ground. The major averages are still on track to make a run for their respective 200dma’s. After that we will have to see if they can go any further. Jerry