Jerry Samet
10-11-2023, 06:30 PM
The market put in another positive session today. After a stronger than expected PPI report the major averages opened higher, but quickly sold off and the gains were lost. Buying came in and the major averages rallied back by the close to finish near their intraday trading highs. The COMPQ and the NDX gained .71% and .72% respectively. The SPX rallied .43%. Volume was mixed, higher on the New York and lower on the Nasd. Leading stocks rallied as well with the leaders index gaining 1.09% on the day. The index closed high in its trading range on higher but below average volume. The market built on recent gains with another encouraging session. The PPI came in higher than expected, but there were some encouraging parts. The market sold off after opening higher but recovered the losses by the close to finish strong. This is positive action. Possibly most encouraging is the fact that the COMPQ and the NDX have now both broken above their respective 50dma’s. This is very important because it gives us a nice support level for these major averages that would signal trouble if they were broken. The picture is improving a lot. A couple of short term indicators I look at have turned up. The most important thing is the weekly Coppock. This is my most important indicator. It looks like it is setting up to give a signal in the next two or three weeks. The action of the COMPQ will determine the time table. I believe things are looking much better, that would be the final item that says the year end rally is likely underway. The CPI comes out tomorrow, and that will set the tone for trading, at least early. Jerry