Posted on September 8, 2008 - by andrew

Market Recap - September 8th, 2008

The markets bagged gains on much higher volume today:

• S&P 500: +2.05%
• Dow: +2.59%
• Nasdaq: +.62%

On the surface, this might look like a great day. Here’s why you should be skeptical:

1. We’re in a correction after last week’s big declines in heavy volume - today’s action is too soon to mark the beginning of a new rally.
2. Nasdaq’s action today was weak - it was up as much as +1.5% at the open, turned negative as the day went on, and closed with a modest gain compared to other indexes
3. Leading growth stocks still stuck - Few leading stocks are in any position to break out of decent bases

Conclusion: Keep an eye out for buy candidates and new leading sectors while the market attempts a new rally.