Jerry Samet
07-11-2018, 06:28 PM
The market sold off today on news of more tariffs on China coming out of Washington. The major averages opened lower and traded around those levels the entire session. The New York averages were the weakest with the SPX falling .71% while the COMPQ lost .55%. All the major averages finished in the lower half of their intraday trading ranges, a sign that there was little buying interest as prices fell. Volume was higher across the board, showing that large institutional players were selling stocks. It was also enough to produce a fresh distribution day on all the major averages. Leading stocks declined as well with the leaders index falling .62% on the day. It was a little stronger than the overall market as it closed in the upper half of its trading range and right on its short term moving averages. Volume on the index was higher than yesterday, showing that there was distribution in quality growth stocks as well. The market took a hit today on more trade news. The selling was consistent but not that intense as the losses were not that large. The weak close and higher volume were negatives. At the same time leading stocks did a bit better than the overall market. The market has been hit before by trade news and has recovered. The damage done today was contained and the short term trend still seems to be up, although that can change. Jerry