Jerry Samet
01-13-2025, 07:29 PM
The market had a volatile day, but with a good ending. The major averages opened lower and sold off early. The major averages bottomed out and rallied into the close. All the major averages finished high in their intraday trading ranges. All the major averages except the NASD averages managed to get into positive territory. The COMPQ and the NDX fell .38% and .30% respectively. The SPX gained .16%. Volume was lower across the board. Leading stocks were lower as well with the leaders index falling .67% on the day. The index closed high in its trading range on lower and below average volume. The index also closed below its important 50dma. The market looked weak early and it looked like another rough day. Buying came in and erased most of the losses by the close. The major averages finished strong near he top of their trading ranges. Today’s action was encouraging but the overall picture remains negative. We had a dead cat bounce around year end and it didn’t last. The most important items now are the 50dma’s of the major averages. They are not far below these important moving averages and must break above them before any positive action can occur. The other is the ten year yield. If it keeps rising it could cause a very weak market and possibly a recession. We have a busy week ahead. Tomorrow and Wednesday we will se the PPI and CPI reports. Earnings season kicks off later this week with several big banks reporting. Right now a defensive posture is warranted. Jerry