Jerry Samet
01-03-2019, 07:31 PM
The market got hit hard today. The major averages opened lower and after falling there was a weak rally attempt. It didn’t last long and the decline resumed into the close. All the major averages finished at their intraday trading lows, showing there was little buying interest as prices fell. The Nasd averages led the way down with the COMPQ and the NDX falling 3.04% and 3.36% respectively. The SPX was not far behind by declining 2.48%. Volume was higher across the board, showing that large institutional players were dumping stocks pretty heavily. Leading stocks were hit hard as well with the leaders index falling 3.69%. The index closed off its lows but still in the lower part of its trading range. Volume was higher as there was distribution in quality growth stocks as well as the overall market. The index remains below the 17dma and 50dma resistance levels. The market seemed to be trying to rally in the five trading days since Christmas. It was a weak rally but there seemed to be some support under the market. Today that changed as the major averages and the leaders index sold off hard on higher volume. The weak close means that we probably have not seen the bottom yet. There could still be a follow through on a strong session because the major averages have not undercut the low of the rally day, but there appears to be little chance that it will be well confirmed if it happens. Powell will give a speech tomorrow and if it is dovish it could trigger a rally, but the overall picture looks pretty bleak right now. Jerry