Jerry Samet
02-16-2016, 09:38 PM
The market had a strong rally day today. The major averages opened higher and rallied the rest of the session, closing at their intraday highs. The COMPQ led the way higher with a gain of 2.27% while the SPX rallied 1.65%. Volume was clearly higher on the Nasd. The New York had some mixed results. IBD said volume was lower while esignal had it higher. Either way the action was positive today. Leading stocks had a strong session as well with the leaders index gaining 3.50% on higher volume than Friday but still slightly below average. The index closed in the upper half of it’s intraday trading range and cleared the short term 9dma. It tagged the important 50dma during the trading day but could not hold this moving average. It would be very encouraging if the index could close above this resistance level, particularly if it did so on heavy volume. The IBD 50 was strong also as all the components of the group closed up on the day. We will be in a position to generate a follow through starting tomorrow. If the market continues to generate solid rally days it could clearly happen. The weekly Coppock is showing a hint of a curl, meaning that further strength before the end of the week could generate a buy signal that would confirm a follow through if it were to happen. A Eureka could be generated on any strong up day. The %E’s are still very high at 30.5%, so this indicator would have a hard time signaling. The action of the last two trading days is encouraging, but recent rally attempts have failed quickly. There could be a tradable rally at any time, but counter trend rallies in bear markets are tricky things. Attractive stocks are still hard to find. This rally attempt looks better than the those of the recent past, but only time will tell if it has any legs. Jerry