Jerry Samet
10-02-2019, 06:18 PM
The market was hit hard again today. After opening lower the major averages sold off for most of the session and all closed near their intraday trading lows. The New York averages were the weakest with the SPX falling 1.79%. The COMPQ and the NDX fell 1.51% and 1.74% respectively. Volume was higher across the board. It climbed 14.12% on the Nasd and 5.38% on the New York. This is on top of the large volume increases yesterday. The higher volume along with the price declines showed that large institutional players were dumping stocks today and produced a new distribution day on all the major averages. Leading stocks were lower as well with the leaders index falling 1.10% on the day. The index closed in the upper half of its intraday trading range and volume was lower than yesterday. The market sold off further today. The major averages moved further below their 50dma’s and the NYA dropped below its 200dma. The leaders index made new lows for the decline and continues to trade below its declining 9dma and 17dma. Any idea that the rally attempt that began with the most recent follow through is pretty much dead. The charts of the COMPQ and the SPX are showing pretty clear head and shoulders patterns. The market is clearly in a correction. The next tests will be the 200dma’s and the lows of last July for the COMPQ and the SPX. There are some important economic reports coming out later this week, but the picture looks pretty dark right now. Jerry