Jerry Samet
06-07-2018, 10:00 PM
The market took a break today. The major averages spent almost the entire session in negative territory. The Nasd averages were the weakest with the COMPQ and the NDX lower by .70% and .79% respectively. The New York averages did better with the SPX off by .07%. The Nasd averages closed low in their trading ranges while the New York averages finished high in their ranges. Volume was higher across the board. This produced a fresh distribution day on the Nasd averages while the decline in the SPX was too small to qualify. Leading stocks were hit as well with the stocks that have recently led the way higher sold off. The leaders index declined by .46%, but held above all its short term moving averages. The index closed high in its trading range, a good sign. Volume on the leaders index was much higher than yesterday. This is usually a negative, but the fact that it closed so high in its trading range is actually a sign of support. After the recent advance a pullback is to be expected. The New York averages held up well, and this is positive. It would have been better if the decline today had occurred on lower volume, but the damage today was limited. The chart of the leaders index still looks good. Today’s action didn’t really change the overall positive picture right now and we should see higher prices ahead. Jerry