Jerry Samet
05-23-2024, 06:25 PM
The market had a nasty reversal today. After opening higher the major averages sold off after stronger than expected economic news came out. The selling lasted most of the remainder of the session and all the major averages finished near their intraday trading lows. The COMPQ and the NDX fell .39% and .44% respectively. The SPX declined .74%. Volume was mixed. It was higher on the NASD and about unchanged on the New York. This produced a distribution day on at least the NASD averages. Leading stocks did a little better with the leaders index falling only .10% on the day. The index closed in the lower half of its trading range on higher but below average volume. It held the short term 9dma and continued in the recent consolidation. Today’s action was disappointing. NVDA’s earnings came in good and it looked early like there would be a nice rally. The market reversed after some stronger than expected economic news seemingly reducing the chances of interest rate cuts. The major averages made new all time highs and then reversed lower. This is not positive action. Two short term indicators I look at, the Summation Index and the A’s minus E’s, both turned down yesterday and today. I never thought that this would be a strong rally, and it could still move higher from here, but it is looking pretty tenuous right now. Jerry