Jerry Samet
10-31-2019, 06:28 PM
The market sold off today, news on trade got most of the blame. The major averages opened lower and built some solid losses. There was some late strength and the major averages finished well off their lows of the day. All in fact closed in the upper half of their intraday trading ranges. The New York averages were the weakest with the SPX declining .30%. The COMPQ was off by .14% while the NDX was flat with a gain of .01%. Volume was higher by 13.26% on the Nasd and lower by .94% on the New York, according to Esignal. Volume on the Nasd was clearly higher but the small declines in the Nasd averages means that there was no distribution on these averages. The New York volume was very close and different data feeds could have different results. Higher volume on the New York would produce distribution on these averages. I will let others keep the official distribution count. Leading stocks were generally weaker as well. The leaders index fell .33% on the session. It traded below the 17dma support level again today but rallied back to close above this moving average. The index closed high in its trading range and volume grew and was above average. The market sold off today, but the damage was limited. The Nasd averages had small declines that are not unusual after a few days of rallying. The New York averages had larger declines but their charts are still looking good. The distribution count is a little high but not at really worrisome levels yet. The leaders index continues to consolidate at a confluence of the 9dma and the 17dma. The direction that the index breaks will be critical. A good breakout on volume off the moving averages support would be very positive. If it breaks below the current moving average support it would be very negative. We will have to wait and see which way it will go, but right now I would say the preponderance of the evidence suggests that the market will try to move higher. Jerry