Jerry Samet
08-20-2025, 06:18 PM
The market had a mixed session today. The major averages opened with mild losses and then sold off more. They made a bottom within about an hour and then rallied into the close, recovering much of the losses. The major averages finished with losses but high in their intraday trading ranges. The COMPQ and the NDX fell .67% and .58% respectively. The SPX declined .24%. Volume was mixed, higher on the New York and lower on the NASD. This produced a distribution day on the New York averages, but it was mitigated by the strong close. Leading stocks were mixed but moderately higher on the day. The leaders index gained .50% on the session. The index closed high in its trading range on higher and above average volume. The index almost tagged its critical 50dma but held well above it. The day started out looking like yesterday’s selling would continue, which it did at the open. Buying came in and much of the losses were recovered by the close. The fact that the major averages closed high in their trading ranges and held important short term moving averages is good. It does look more and more like there is going to be some sort of correction or at least some mostly sideways action. The sell off in leading growth stocks is not a good sign and often comes before a correction. Right now Powell’s speech on Friday is the big wild card. He could sound really dovish and kick off at least a short rally. If not the market is likely to continue to work its way lower in at least the short term. Jerry