Jerry Samet
01-17-2017, 08:04 PM
The market opened lower today and was in negative territory all day. The major averages finished low in their intraday trading ranges, a sign of lack of support. The best performance was in the NDX which fell only .29% and closed high in its intraday range. The COMPQ fell .63% and the SPX lost .30%. The most damage was done in the small and mid-cap stocks. Volume was higher across the board and above average on the New York. This was enough to produce a new distribution day on all the major averages. Leading stocks took a hit as well with the leaders index falling 1.59% on higher but below average volume. The index closed low in its trading range and is back below its short term moving averages. The index is now back in the consolidation it began in early December. The breakout into new high ground that happened last Tuesday has failed. Today’s action was pretty negative. Leading stocks were hit pretty hard and only five stocks in the IBD 50 were higher. Leading groups are showing some cracks and some caution is warranted. Jerry