Jerry Samet
07-18-2022, 06:42 PM
It was a wild day. Last week the market showed some positive action that increases the possibly of something of a rally that could be traded. The major averages gapped higher at the open today in what looked like a continuation of Friday’s action. The Nasd averages even gapped above their 50dma’s that have provided significant resistance. The early gains were large, but they didn’t hold. The major averages reversed lower and all closed near their intraday trading lows. The COMPQ and the NDX fell .81% and .89% respectively. The SPX lost .84%. Volume was mixed. It gained 17.52% on the Nasd and .98% on the New York. The price decline and volume increase produced a distribution day on the Nasd averages. Leading stocks were mixed. The leaders index gained 1.61% on the day, mainly due to strength in energy components. The index closed low in its trading range on higher but still below average volume. The market looked like it might develop a minor rally when last week early losses were recovered on two bad inflation reports. Then on Friday the market rallied strongly on a “strong” retail sales report that was all inflation. The strong action produced a Eureka signal, the second in seven trading sessions, and turned the weekly Coppock slightly up. The gap up today with the Nasd averages climbing above their 50dma’s made it look like there could be a mild tradable rally underway. Selling came in soon and the market sold off into the close. What could have been a follow through like day turned into a distribution day. I see no reason to be playing around with this market. Jerry