Jerry Samet
06-19-2021, 11:29 AM
My last update got cut off somehow and only the beginning of the update went through. Clearly my email problems were not completely solved. Hopefully they are now. The market got hit pretty hard yesterday as weakness spread throughout the market. The Nasd averages held up best but even they had meaningful losses. The major averages opened lower and worked their way down most of the session. All the major averages finished near their intraday trading lows as selling continued into the close. The Nasd averages held up better with the COMPQ and the NDX falling .92% and .81% respectively. The SPX fell 1.31%. The small and mid-cap stocks, along with the semiconductors were hit even harder. Volume was higher across the board. It rose 19.56% on the New York and 11.03% on the Nasd. This was caused by yesterday being an expiration day, but it still produced a new distribution day on all the major averages. Leading stocks were lower as well with the leaders index falling 1.54% on the day. The index closed in the lower half of its trading range and volume was much higher and above average, also somewhat due to the expiration day. The market outlook darkened quite a bit last week and especially on Friday. All the New York averages as well as the small and mid-cap averages are below their respective 50dma’s, a negative sign. The Nasd averages are holding up better but they are not looking so hot either. Leading stocks are looking weak as the leaders index is on a real losing streak. It has had four down days in a row on successively higher volume, a sign of large institutional players selling stocks. I have been saying that the market was having trouble moving higher and really couldn’t break decisively above its old highs. It now looks more likely that the inability to move higher is leading to weakness in the markets. It looks like the market couldn’t move higher and will now sell off. We don’t know how much and things could change, but it looks like lower prices are ahead. Jerry