Jerry Samet
01-11-2024, 06:24 PM
The market was little changed at the close after some wild swings. The CPI report came in above expectations and the major averages sold off early. They found a bottom and recovered to close little changed. All the major averages closed high in their intraday trading ranges. The COMPQ was flat while the NDX gained .17%. The SPX was lower by .07%. Volume was lower across the board. Leading stocks did better than the overall market with the leader’s index gaining .63% on the day. The index closed high in its trading range on lower but above average volume. The leaders index made a new high on both a closing and an intraday basis. The relative strength line also made a new high. The market actually acted pretty well today. The higher than expected CPI numbers could easily have caused a sell off, and did early. The market was then able to recover virtually all the losses and close nearly unchanged. Holding up in the face of negative news, especially after an advance, is an encouraging sign. The fact that leading stocks are acting well and even leading the market is also a good sign. The major averages are finding some resistance at old highs and from some round numbers and it may take some spark to get them to new highs. Earning season kicks off tomorrow with some large banks reporting. Earnings reports will cause some volatility, but the overall trend remains up. Jerry