Jerry Samet
08-13-2024, 06:22 PM
The market staged a strong rally today after the PPI report came in below expectations. The major averages opened higher and worked their way up the rest of the day. All the major averages finished near the top of their intraday trading ranges. The COMPQ and the NDX gained 2.43% and 2.50% respectively. The SPX was higher by 1.68%. Volume was higher across the board, producing a new follow through on all the major averages. Leading stocks had a good day as well with the leader’s index gaining 2.32%. The index closed high in its trading range on higher but below average volume. The market rallied strongly today after the PPI report came in lower than expected. This encouraged the market to believe rates can be cut more aggressively this year. The gains were strong, and the market closed high in its trading range. Higher volume completed a very solid day and produced a follow through. Right now, the follow through looks like it will be confirmed by only one of the three confirming indicators. The %Es are in range and will confirm. There was no Eureka signal today, but that could still come. Most importantly the weekly Coppock is not set up to signal right now and will not confirm. It was a strong session, but I am a bit concerned about the lack of a Coppock and the seasonality. There could be a decent rally where gains can be made, but I think the chances of a strong rally from here are not good. The major averages are just below their respective 50DMAs and must clear this important moving average for this rally to go anywhere. The CPI comes out tomorrow and that should set the tone for trading.