The market tried to bounce back today, but it was a weak bounce. The major averages opened higher and quickly ran to nice gains. They didn’t last as selling came in and continued the rest of the day. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX gained .80% and .72% respectively. The SPX rallied .41%. Volume was lower across the board. Leading stocks had a decent session as well with the leaders index gaining 1.51% on the day. The index closed in the lower half of it’s trading range on lower and well below average volume. After a big decline like we saw yesterday you want to look at the quality of the bounce to see if the worst is possibly over. The bounce today was not impressive. Strong early gains were mostly lost and the major averages again closed low in their trading ranges. Volume was lower across the board, not what you want to see in a rebound. The market clearly didn’t think much of the big earnings reports or the economic news. The rally now is at something of a crossroads. It must recover quickly and rally back to the old highs, yet the short term indicators I look at are mostly lower. The caution level has increased in the last few days. Next week we will see the election and a Fed announcement. At this point things could go either way. Jerry
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