Jerry Samet
08-17-2022, 06:29 PM
The market sold off today after recent advances. The major averages opened lower and after a rally attempt sold off late. All the major averages closed in the lower half of their intraday trading ranges. The Nasd averages took the worst of it with the COMPQ and the NDX losing 1.25% and 1.21% respectively. The SPX declined .72%. Volume was mixed. It fell 10.29% on the New York and rose 2.51% on the Nasd. This was enough to produce a distribution day on the Nasd averages. Leading stocks were lower as well with the leaders index declining .63% on the day. The index closed high in its trading range and the index held its short term 9dma. Volume was lower and well below average. The market gapped lower at the open but made a rally attempt that got the New York averages into positive territory. It didn’t last as selling came in and all the major averages closed lower. The market has rallied a lot recently so a rest would not be unexpected. The problem is that the declining 200dma’s of the major averages are just above current levels. The SPX looks like it may well be turned back after tagging this resistance. The current bear market rally will have to break above this moving average to go any higher. Past bear market rallies have played around with this level before turning lower. Time will tell what this one will do. Jerry