Jerry Samet
07-29-2023, 10:39 AM
The market staged a nice rebound after Thursday’s reversal. The major averages opened with solid gains and mostly held on to them the rest of the session. All the major averages finished high in their intraday trading ranges. The Nasd averages led the way with the COMPQ and the NDX gaining 1.90% and 1.85% respectively. The SPX was higher by .99%. Volume was lower across the board. Leading stocks did well also with the leaders index gaining 1.99% on the day. The index closed high in its trading range on lower and below average volume. The index is now above all its short term moving averages and is near its all time highs. The market rebounded pretty well after the reversal on Thursday. It looked like there might be some corrective action after the reversal and there may still be, but yesterday’s action was encouraging. Price action was strong and while volume wasn’t higher as well, it was a Friday in the summer when a lot of market participants leave early. The comparison with Thursday’s heavy volume was also difficult. The kind of reversal we saw on Thursday is concerning, but it doesn’t mean the rally is over. Yesterday’s action helped repair some of that damage. We could well see some short term corrective or consolidation action here, but I think the longer term trend remains higher. Jerry