Jerry Samet
09-26-2017, 06:34 PM
The market struggled today to recover after yesterday’s decline. I have said many times that after a nasty decline the quality of the bounce is very important. The bounce today was weak. The market opened slightly higher and after some modest gains was unable to hold them. The COMPQ finished with a gain of .15% while the SPX was up by .01%. The greatest strength was in the small cap stocks as the RUT was higher by .34%. All the major averages closed at or near their intraday trading lows. Volume was lower across the board, not what you want to see as a market is trying to recover. Leading stocks didn’t do any better. The leaders index was higher by .08% and closed low in its trading range. Volume was lower than yesterday but above average. The index stayed under its important 17dma now resistance level. The market is under some stress right now. The COMPQ is still sitting on its 50dma while the NDX spent its second day under this important moving average. As I said earlier after a decline like we saw yesterday the quality of the bounce is critical. What we saw today was nothing to get excited about. We have to see some strong upside action in both the major averages and the leaders index in the next few days r we will likely see lower prices ahead. Jerry