Jerry Samet
01-12-2017, 06:40 PM
The market opened weak with the major averages selling off. There were some pretty decent sized losses going and it looked like there could be a real negative session. About an hour and a half into trading the market bottomed out and began to rally. The increase continued for the rest of the session and the major averages erased most of their losses. The COMPQ finished with a decline of .29% while the SPX was off by .21%. All the major averages closed at or near their intraday trading highs , a sign of support. Volume was lower across the board, showing that large institutional players were not selling stocks today. Leading stocks were weaker than the overall market. The leaders index was lower by 1.92% and only nine stocks in the IBD 50 were higher today. The leaders index finished in the upper half of its trading range and held its short term moving averages. The index is now in danger of falling back into the consolidation pattern it just broke out of and should hold this support level. Early on it looked like it could turn into a very negative day. The market then reversed higher and while it couldn’t close in positive territory it recovered most of its losses. The charts of the major averages look ok and minimal damage was done today. Jerry