Jerry Samet
07-06-2016, 06:48 PM
The market had what looks like a positive reversal today. After opening weak the major averages put in a bottom a little more than an hour and then staged a solid rally into the close. The COMPQ finished with a gain of .75% and the SPX rallied .54%. Both closed at the top of their intraday trading ranges. Volume cooperated today as it was higher across the board, showing that large institutional players were buying stocks today. It was a solid accumulation day. Leading stocks were higher as well with the leaders index gaining .62% on the session. It closed high in it’s intraday trading range and volume was lower and well below average. The index has spent the last three days in a trading range after the run to new highs on the Brexit bounce back. It is healthy for a stock or an index to take a rest after an advance. The low volume of the last three sessions is also constructive. The kind of reversal we saw today can lead to higher prices in at least the short term. It looks like the market wants to go higher. Jerry