Jerry Samet
02-28-2017, 06:18 PM
The market was lower at the open and traded in negative territory all day. The major averages closed with moderate losses with the COMPQ down by .62% and the SPX declining .26%. They all closed low in their intraday trading ranges, showing little buying as prices fell. Volume was higher across the board and above average on both exchanges. This means that large institutional players were selling stock and added a fresh distribution day to all the major averages. The greatest weakness today was in the same place as the greatest strength yesterday, the small cap stocks and the semiconductors. Leading stocks were weaker as well with the leaders index falling .76% on higher and just below average volume. This was enough to produce distribution in quality growth stocks. The index tagged the declining confluence of its short term 9dma and 17dma and was turned back. These short term moving averages are now the primary resistance the index faces. It is trading between these moving averages on the upside and the 50dma on the downside. The direction that the index breaks will likely tell us where it will be going. The major averages are acting pretty well right now. I said before that they were getting a little ahead of themselves short term and would likely have to consolidate to allow their important moving averages to catch up. They are doing that in a constructive manner. The spotlight now is on the leaders index. If it breaks support at the 50dma, especially on volume, it will be very negative. Jerry