Jerry Samet
07-01-2017, 12:15 PM
The market traded mostly near unchanged yesterday before the major averages closed little changes. Most of the weakness was again in the tech stocks with the Nasd averages and the SOX bringing up the rear. The COMPQ finished with a loss of .06% while the SPX was higher by .15%. All the major averages closed at or near the bottom of their intraday trading ranges, showing there was little buying interest. Volume was generally low, as you would expect before a pre-holiday weekend. It was lower on the Nasd and very close on the New York. IBD had New York Volume lower while Esignal showed it slightly higher. Leading stocks were pretty flat as well with the leaders index higher by .10%. The index closed in the lower half of its trading range. It again traded below its important 50dma but closed above it. Volume was lower and well below average. The market continues to struggle. All the tech related averages, the Nasd and SOX are below their 50dma’s while the New York averages continue to flat line. For the first time since the intermediate rally began after the election canslim style breakouts are not working. This is a real change in character for the market. For the last few years in the QE era any sell off was quickly met with a rebound and a rally to new highs. This does not seem to be happening now. Whether or not this turns into a more serious correction remains to be seen, but the picture has darkened considerably in the last few weeks. There will be no update on Monday. I hope everyone has a good 4th. Jerry