Jerry Samet
02-09-2023, 06:25 PM
The market suffered a nasty reversal today. After opening higher the major averages quickly started declining and sold off into the close. All the major averages finished near the bottom of their intraday trading ranges. The New York averages led the way down with the COMPQ and the NDX falling 1.02% and .91% respectively. The SPX was lower by 1.40%. Volume was higher across the board, producing a distribution day on all the major averages. Leading stocks were lower as well with the leaders index falling .94% on the day. The index closed low in its trading range on higher and above average volume. The market suffered a nasty reversal today. After strong gains at the open the major averages reversed and sold off pretty consistently during the day. The higher volume showed increased selling pressure as large institutional players sold stocks. We also got the first distribution day in a while as the pattern of higher volume on up days and lower volume on down days was broken, at least for one day. This was the first day in which real damage was done. The kind of reversals we saw today can cause at least short term declines in the market. The major averages took out their 10dma’s today but are still holding above other moving averages. The Summation Index and the A’s minus E’s are heading lower right now and I will look to them to give some warning of the end of this pullback. The overall picture still looks solid, but today’s action was a little unsettling. Jerry