Jerry Samet
04-10-2017, 06:43 PM
It was a pretty wild ride today and when it was over the market was about where it started. The major averages opened higher and sold off and rallied twice. A little late weakness brought the major averages to unchanged. The COMPQ finished with a gain of only .05% while the SPX was up by .07%. All the major averages finished the day low in their intraday trading ranges. Volume was lower across the board and below average on both exchanges. Part of this is most likely due to the Passover holiday starting tonight and the short week for the markets. Leading stocks struggled along with the overall market with the leaders index falling .38% on very low volume. The index closed in the lower half of its trading range, a sign of lack of support. The index again tried and failed to break above its short term 9dma and 17dma. The inability of the leaders index to overcome this important resistance is worrisome. The action of the market today shows that it is struggling. Twice today the major averages had decent gains and couldn’t hold them. This shows that there was selling as prices rose. The New York averages are right on or just above their 50dma’s. I think two things must happen now to increase confidence that the rally has further to go. The major averages must overcome resistance and move into new high ground and the leaders index must break above its short term moving averages with some conviction. Jerry