Jerry Samet
03-08-2021, 06:37 PM
After Friday’s strong rally the market started out higher today. The major averages rallied early, but topped out and sold off into the close. All the major averages finished near their intraday trading lows as selling continued to the end. The Nasd averages took the brunt of it as rotation out of growth and tech stocks continued. The COMPQ and the NDX fell 2.41% and 2.92% respectively. The SPX fell .54%. The semiconductor stocks were crushed as the SOX lost 5.41%. Volume was lower across the board. It dropped 23.88% on the Nasd and 15.23% on the New York. Leading stocks continued to get hit as the leaders index fell 3.82% on the day. It closed near the bottom of its trading range on lower but still above average volume. The market had a positive reversal on Friday and it looked like there would be some continuation early today. The New York averages continued to outperform as the rotation continued. The Nasd averages were weaker all day but sold off hard into the close. The COMPQ made a new closing low for the move, but not an intraday low, so the currant rally attempt is still in force. The SPX is sitting right on its 50dma right now. It is very important for the SPX to hold this support. If it doesn’t it will be very negative. The Nasd averages continue to worsen and their charts look pretty bad. Quality growth stocks are getting killed as can be seen in the chart of the leaders index. There was lighter volume today and that shows that large institutional players were not heavy sellers today. The Nasd averages lost most of what they gained on Friday and overall the picture is not to bright. Jerry