Jerry Samet
08-08-2024, 06:18 PM
The market put in a solid rally today after jobless claims eased recession fears. The major averages opened higher and mostly worked their way up the rest of the day. All the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 2.87% and 3.06% respectively. The SPX rallied 2.30%. Volume was lower across the board, not what you want to see in a rally day. Leading stocks rallied as well with the leaders index gaining 3.44% on the day. The index closed high in its trading range on lower and slightly above average volume. The market had a nice rally today with the major averages posting good gains and closing strong. It was a good rally day, but it would have been better to see higher volume on the advance. The market is trying to rally now, but a follow through soon is not going to be confirmed by the weekly Coppock as this indicator needs more time to get into a position to signal. It is also not a good time on a seasonal basis. Few successful intermediate rallies began in August and September. We could well get a follow through soon, but I would be a little skeptical. Right now the major averages must break above their respective 50dma’s to have any chance of a successful rally. Jerry