Jerry Samet
03-04-2021, 06:22 PM
About the only good thing you can say about today’s action is that the market closed off its lows. It was a tough session all around. The major averages opened little changed but started selling off hard on testimony from Powell. The losses were large and while some late buying came in the closing losses were substantial. All the major averages finished low in their intraday trading ranges. The Nasd averages were the weakest with the COMPQ and the NDX falling 2.11% and 1.73% respectively. The SPX fell 1.34%. Volume was considerably higher across the board and was above average. It climbed 17.60% on the New York and 43.64% on the Nasd. This combined with the price declines produced fresh distribution days on all the major averages. Leading stocks were hit hard with the leaders index declining 5.87% on the day. The index closed low in its trading range on much higher and was the highest since late January. This shows that large institutional players were selling heavily today. The market broke hard today and the major averages and the leaders index all made new lows for the sell off. The SPX joined the other major averages below its 50dma as they all moved further below this important now resistance level. When this moving average is broken on heavy volume it is a big sell signal. The heavy volume on the selling shows that big institutions are dumping stocks heavily and that is always a signal to get out of the way. The charts of both the major averages and the leaders index look ugly. Everything points to more downside. Jerry