Jerry Samet
08-08-2017, 06:52 PM
The market opened with solid gains and all the major averages looked like they would put in a positive performance. A little less than half way through the session the major averages reversed and started selling off. All the major averages closed at their intraday trading lows after the New York averages made new highs. The COMPQ finished with a loss of .21% while the SPX declined .24%. Volume was higher across the board and this was enough to produce a fresh distribution day on all the major averages. Leading stocks held up better than the overall market with the leaders index higher by .34%. The index and most quality growth stocks gave up larger early gains as the market reversed, but still held in positive territory. This is a new closing and intraday high and the relative strength line also made a new high. The action of the day was disappointing. Strong gains and weak closes are not a sign of a healthy market and the reversal we saw today was not encouraging. The losses today were moderate and all the charts still look ok, but reversals like this are unsettling. The damage so far is pretty small, but the distribution count on the COMPQ is getting a little high. The overall picture remains positive , but there are some clouds on the horizon. Jerry