Jerry Samet
01-15-2025, 07:17 PM
The market staged a strong rally today on tame inflation data and good earnings. The major averages gapped higher at the open and mostly worked their way moderately higher the rest of the day. All the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 2.45% and 2.31% respectively. The SPX rallied 1.83%. Volume was higher across the board. Leading stocks had a strong session as well. The leaders index gained 3.48% on the day. The index closed high in its trading range on higher and below average volume. The index broke above its 50dma and broke a downtrend line. The market rallied sharply today on good news. Unlike yesterday the market held it gains and closed strong. The CPI report came in friendly and several bank earnings were very strong. The gains were strong and pretty much across the board. Volume also came in. You want to see higher volume on a big rally day. The NASD averages broke above their respective 50dma’s, which is encouraging. The SPX finished right on this important moving average. We also saw a nice decline in the yields on longer term Treasuries, which we need to get a sustained rally. We are getting into the thick of earnings season and the numbers will effect the market. This is particularly true when the big cap tech stocks start reporting. Today was a very good session all around. One day doesn’t make a trend, but today’s action makes you take notice. There were a good number of interesting breakouts today, so maybe a little testing of the waters would be ok, but keep it on a short string. Jerry