The Gilmo Report

September 12, 2018

September 12, 2018

After starting the month off with four-straight down days, the major indexes found logical support and rallied on Monday and Tuesday. They even shook off a gap-down open yesterday on news that China was asking the World Trade Organization for permission to sanction the U.S. $7 billion for alleged trade violations.

The NASDAQ Composite Index bounced off the top of its late-July to late-August consolidation on Monday and Tuesday, which was a logical reaction bounce after four days of selling. Absent any additional downside fuel from the Trump Train, the index was free to rally. This morning, however, the index again headed sharply to the downside until, out of the blue, the Wall Street Journal reported that the U.S. was proposing a new round of trade talks with China.

This sent the market rocketing to the upside, but the rally faded and eventually all the major indexes turned back into the red. The session remained volatile all day, with a mixed close that saw the NASDAQ down -0.26% on barely higher volume, qualifying as a distribution day.

Notice, however, that the index has done its best to hold support along the prior late-July to late-August consolidation. Volume over the past two days has picked up as the index has bounced off support and closed in the upper part of its trading range.

 

GR091218-$COMPQ

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