Jerry Samet
10-07-2019, 06:20 PM
The market put in a quiet session today. After opening lower the major averages rallied into positive territory before selling off into the close. All the major averages closed low in their intraday trading ranges, a negative sign. The New York averages were a little weaker with the SPX falling .45% while the COMPQ and the NDX declined .33% and .37% respectively. Volume was lower across the board. It fell 8.47% on the New York and 4.06% on the Nasd. Leading stocks outperformed the overall market with the leaders index gaining .45% on the day. It closed high in its trading range and tagged its 17dma resistance before pulling back. Volume was a touch lower than Friday. The action of the market today was overall slightly positive. After a couple of days of good price gains the major averages held most of those gains. Volume was lower, which is what you want to see when prices pull back after an advance. The COMPQ tagged its 50dma but was turned back. The NDX declined and is sitting right on this important moving average. The SPX also came down to its 50dma while the NYA dropped below this now resistance level. We could still go either way in this environment. The bottom line is that few leading stocks or the major averages are producing any meaningful gains. This would call for a good degree of caution right now. There will be no updates the next two days due to the Yom Kippur holiday. The updates will resume on Thursday. Jerry