Was Today The Long Awaited Follow-Through Day?
The market didn't close at its highs, but it still was a very solid day. The SPX rose +1.0%, the COMP gained +1.6%, and the RUT (small-caps) rallied +1.9%. And volume rose on both exchanges.
That qualifies for the follow-through day that I had been looking for. This means the current rally attempt is the first one since May to show any solid follow-through.
The action was also widespread. I saw at least five different industry groups that were up more than 2.0%. And I think it helped that bond yields behaved, remaining flat at 5.15%. (Doesn't the bond market know that the fed funds rate is going to 5.25? Of course it does)
You will likely hear some people complain tomorrow that the volume wasn't higher. Don't worry, let the naysayers hang on to their skepticism. We don't want everyone to jump on the bullish bandwagon at the same time. Better to scale that wall of worry slowly.
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posted by J. Kahn @ 3:04 PM
1 comments
1 Comments:
Yes, I figured most people would discount yesterday's action. I am going to take my cue from the mid- can small-cap indexes, which had been leaders this year.
They were up +1.8% and +1.9%, respectively. More than the COMP's +1.6%, which IBD felt didn't qualify.
I think we could have a bounce that lasts longer than a few weeks, but we'll have to take it one step at a time.
-JK
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