Jerry Samet
08-24-2024, 10:12 AM
The market staged a nice comeback after Thursday’s decline. Powell gave a very favorable speech and the major averages recovered most of Thursday’s losses. The major averages opened higher and after a little selling after Powell’s remarks rallied into the close. The COMPQ and the NDX gained 1.47% and 1.18% respectively. The SPX rallied 1.15%. Volume was higher across the board. Leading stocks had a good session as well with the leaders index gaining 1.63% on the day. The index closed high in its trading range on lower and slightly below average volume. Powell laid out a rate cutting program that the market liked quite a bit. The major averages made up most of Thursday’s losses with the New York averages looking the best. The market is looking better now that it has recovered and a rate cut next month is certain. The size of the cut is still in question, although it is likely to be 25 basis points. The NASD averages look like they held their 50dma support levels, the New York averages never got to this important moving average. The next big piece of news will be NVDA’s earnings due out on Wednesday. We are in a bit of a corridor right now for the major averages. The 50dma is providing support and the old highs are resistance. Which one is broken first will determine if this rally really has legs. Jerry