Jerry Samet
11-07-2017, 06:28 PM
The market took a break today after its recent move to new highs. The major averages opened lower and were in negative territory the entire session. The COMPQ was lower by .27% while the SPX declined only .02%. The NDX was a bit stronger as it closed with a gain of .11%. All the major averages closed near the bottom of their intraday trading ranges. This shows some lack of support. Volume was slightly higher across the board, although the gains were small. That was enough to produce a distribution day on the COMPQ, but the loss in the SPX was too small to qualify. Leading stocks were lower as well with the leaders index falling .31% on the session. The index closed in the lower half of its trading range, but not by much. Volume on the leaders index was lower than yesterday and below average. This shows that there was not that much selling pressure in quality growth stocks. The day’s action was not really to negative. It is to be expected that the market would take a break after a rally, and is in fact a good thing. It would have been better if volume was lower on the pullback, but the decline was mild overall and not much cause for concern. The only sector that took a real hit was the small caps, which have been lagging in recent days and weeks. Overall the day’s action was nothing to worry about and some consolidating action would be ok right now. Jerry