Jerry Samet
07-09-2014, 11:05 PM
After the sell off of the last two days the market had a snap back day today. Over all it was not to impressive a move. The strength of the initial rally attempt after a decline is critical. A strong rally can mean the worst is over, a weak rally is usually followed by lower prices. The major averages had a moderate attempt today with the COMPQ rising by .63% and the SPY higher by .46%. Volume was considerably lower across the board showing there was little institutional buying. Leading stocks were also higher with the leaders index up by .76%. Volume was much lower than yesterday and well below average. The index was unable to regain it’s important 17dma, a negative sign. Overall the day’s action did not do much to strengthen the bullish case. Unless we get real gains in both the major averages and leading stocks on strong volume the rally will likely have seen it’s highs. Jerry