Jerry Samet
09-06-2023, 06:30 PM
The market took a hit today. The major averages opened lower and were mostly lower during the day. All the major averages finished in the lower half of their intraday trading ranges. The COMPQ and the NDX fell 1.06% and .88% respectively. The SPX lost .70%. Volume was slightly lower across the board so there was no distribution. Leading stocks were mostly lower as well with the leaders index falling .59% and closing low in its trading range. Volume was higher but well below average. The action of the market was pretty negative today. There are some real cracks showing up in the current rally. There was early distribution two days after the follow through. Today several averages that had regained their 50DMAs lost this important moving average. The RUT, MID, COMPQ, INDU. And NYA all broke back below this support. Also the Summation Index turned lower today, another warning sign. All this points to real stress and a good probably that this rally will fail. I said at the outset that it was a poorly confirmed follow through, and while this rally could well succeed it is looking more and more like it will not. Jerry