Jerry Samet
06-14-2017, 05:50 PM
The market put in another pretty negative session today. After opening lower the major averages traded in slightly lower territory while it waited for the Fed announcement. The report itself didn’t do too much but when Yellen started her press conference the major averages started selling off pretty hard. There was some late buying that took the major averages off their intraday trading lows, but the close was still negative. The worst action was again in the tech stocks with the COMPQ declining .41% on the day while the SPX was off by .10%. The biggest loss was in the semiconductor stocks as the SOX declined 1.06%. All the major averages closed in the lower half of their trading ranges, not a positive sign. Volume was mixed, lower but still above average on the Nasd and higher on the New York. The decline in the SPX was too little to cause a new distribution day. Leading stocks were generally lower as well with the leaders index falling 1.25% on the day. The index closed in the lower half of its trading range and broke below the important 17dma support level. Volume was lower than yesterday but was still above average. The relative strength line of the index is looking ugly and is approaching its 50dma. The market is not rebounding quickly and strongly from the recent decline as it has in the past. The big cap tech stocks and the semiconductor issues that were the leaders of this rally for a long time are showing continued weakness. This is not encouraging. The financial stocks have done better recently with the XLF having two pocket pivots in the last four trading days. We could be seeing a rotation into new leadership or a topping out of the entire market. It is too early to tell for sure, but the market is not bouncing back with vigor as it has in the past. Jerry