Jerry Samet
10-12-2023, 06:23 PM
The market sold off today after recent gains. The CPI report came in a little above estimates, but not much. The major averages opened mixed but showed some modest gains, especially the Nasd averages. Selling came in and all the major averages were driven down to solid losses. Buying at the end erased some of the declines but the major averages still closed with losses and in the lower half of their intraday trading ranges. The COMPQ and the NDX fell .63% and .37% respectively. The SPX declined .62%. Volume was higher across the board, producing the first distribution day of the rally in all the major averages. Leading stocks were lower as well with the leaders index falling .83% on the day. The index closed in the lower half of its trading range on higher and almost average volume. The market started out a bit mixed but there was some strength in the Nasd averages. A lot of selling came in and knocked the major averages down, but they did recover some of the decline by the close. The COMPQ went back below its 50dma and must recover it quickly. The volume increased on both exchanges which produced distribution, but one day by itself is not that important. The COMPQ losing its 50dma is not good, but hopefully it will recover this important moving average quickly. The COMPQ, NDX and SPX also have clear down trend lines in their charts. This will be resistance but breaking above them would be very encouraging. The weakness today doesn’t feel good, but after the recent rally it is not unusual. Watch the 50dma of the COMPQ, but the trend still looks positive. Jerry