Jerry Samet
07-06-2023, 06:35 PM
The market sold off today on stronger than expected economic reports. The major averages opened lower and after some early selling worked their way higher and recovered some of the losses. All the major averages closed high in their intraday trading ranges with the losses coming from the opening gaps. The COMPQ and the NDX lost .82% and .75% respectively. The SPX declined .79%. Volume was higher across the board, showing that large institutional players were selling stocks today. Leading stocks were off as well with the leaders index falling 1.29% on the day. The index closed high in its trading range on slightly higher but well below average volume. The index held it 9 and 17DMAs today. The market took its first real hit in a while today. The stronger than expected economic reports, mostly the ADP report, showed a solid economy. This brought back worries about higher interest rates. The higher volume showed selling pressure and added a distribution day to all the major averages. The fact that the major averages and the leaders index closed high in their trading ranges mitigated some of the damage. Both the major averages and the leaders index held some important moving average support today. The action was negative but not enough to alter the overall encouraging short term action. I think the rally is likely to continue, abet with some negative action like we saw today. Jerry