Jerry Samet
10-23-2023, 06:22 PM
The market showed real weakness late last week and the recent follow through on 10/6 officially became a failure. The major averages opened lower today as interest rates rose. They rallied as rates declined and moved to solid gains. It didn’t last as selling came in and the gains were mostly lost. The Nasd averages did better and closed in the upper half of their intraday trading ranges. The New York averages closed in the lower half of theirs. The COMPQ and the NDX gained .27% and .30% respectively. The SPX declined .17%. Volume was mixed, lower on the New York and higher on the Nasd. Leading stocks were mostly flat with the leaders index higher by .08%. The index finished in about the middle of its trading range on lower and below average volume. After a lot of weakness last week the market opened lower on interest rates, but staged a nice reversal into positive territory. It didn’t last as thy sold off into close and lost almost all the gains. This is a sign of weakness. The action last weak was very negative and some kind of bounce was likely. It didn’t happen today, which points to the decline not being over yet. There is usually a positive tone this time of year, but the situation in the Middle East may be interfering with that. We are now in the thick of earnings season and this week is maybe the most important week. There are several large tech companies reporting this week and all could move the market if the numbers deviate from expectations. I still think there will be a yearend rally, but the market is not ready yet. Jerry