Jerry Samet
08-24-2017, 06:19 PM
The market pretty much struggled through the session today. The major averages opened flat and were in negative territory all day. The losses were small with the COMPQ off by .11% and the SPX lower by .21%. All the major averages closed low in their intraday trading ranges. Volume was higher across the board, but the increases were small. It was enough however to produce a new distribution day on the SPX. Leading stocks continued to act pretty well overall with the leaders index gaining .44% on the day. The index continues to act well as the major averages struggle. It is rising above its short term 9dma in an orderly fashion. It closed in the upper half of its trading range and the relative strength line continues to set new highs. At this point it looks like the market could go either way. The major averages seem to be struggling a bit as they have not been able to build on Tuesday’s nice gains. They longer they stay bouncing around the greater the chance that they will break lower. The market needs a good rally on volume to resolve this. On the other hand leading stocks are doing well as shown in the rising leaders index. The only issue here is that volume has been light on the recent gains. Either the major averages will drag the leaders down or the leaders will pull the major averages higher. We will have to wait and see how this is resolved. I will be away for a few days. The updates will resume early next week. Jerry