Jerry Samet
08-10-2023, 06:26 PM
The market put in another negative reversal today. After a slightly better than expected CPI report the major averages opened with strong gains. After a short rally selling came in and all the major averages sold off into the close. All the major averages finished near the bottom of their intraday trading ranges, although with small gains. The COMPQ and the NDX were higher by .12% and .18% respectively. The SPX gained .03%. Volume was mixed, higher on the New York and lower on the Nasd. Leading stocks were also up slightly with the leaders index higher by .23%. The index closed in about the middle of its trading range on lower but above average volume. The market looked early like it might have a nice bounce after recent weakness. The major averages were strong early after the CPI report, but again it didn’t hold. We had another negative reversal, although the major averages finished with small gains. The market is looking more negative as this is the third negative reversal in a short period of time. The Nasd averages are sitting virtually right on their 50DMAs, as is the leaders index. The SPX has just a little room before reaching this important support. If the major averages and the leaders index break below this support it will be very negative and would point to lower prices in the short term. We should know more in the next couple of days. Jerry