Jerry Samet
09-12-2016, 07:20 PM
The market bounced back today from Friday’s decline. The premarket looked like the selling would continue and the major averages opened lower. There was a bottom less than a half and then a steady rally began. After one of the the Fed governors gave a dovish speech that kind of negated the statements on Friday. We got back much of the losses on Friday in what was overall a positive but not overwhelming session. The COMPQ gained 1.68% while the SPX rallied 1.47%. All the major averages closed at their intraday trading highs. This is less than they lost in the last session. Volume was lower across the board, but was still above average. this shows that the buying pressure today was less than the selling pressure on Friday. Large institutional players bought less today than they just sold. Leading stocks mirrored the overall market. After opening lower the leaders rallied and finished at it’s intraday high with a gain of 1.63%. Volume was lower than Friday’s very high level but it was well above average. Again quality growth stocks rallied but not as much as they fell on Friday. The index held it’s important 50dma and is just below it’s short term 17dma. After a big decline you always look to the quality of the bounce to tell you if the worst is likely over. The bounce today was solid but not enough to really relieve the stress created by the sell off. The COMPQ regained it’s 50dma but the New York averages remain below theirs. Many leading stocks bounced off support levels but haven’t regained all their losses. Another item I am watching is the weekly Coppock on the COMPQ. Is has flattened out in the last two weeks after a good rally. It has not given a sell signal but any real weakness by the end of the week might change that. We must see the market and quality growth stocks continue to rally with some conviction to get us out of the woods. Jerry