Jerry Samet
10-18-2012, 11:06 PM
The market had a disappointing day today. All the major averages were down with the COMPQ leading the way. It lost just over one percent and finished near the lows of the day as tech leaders like AAPL and GOOG joined IBM and INTC in taking hits. Volume increased across the board, producing a distribution day on the Nasd. Leading stocks got hit much worse as the leaders index fell 3.67% on very heavy volume. Two index components(MLNX and ALGN) accounted for much of the loss by each declining more than 20% on weak earnings, but several other components of the index also fell hard. The index gapped below it's 50dma on extremely heavy volume which is a very negative sign, The COMPQ, which had just gotten back above it's 50dma came back below it on increasing volume. Not a positive sign. It also now has another lower high. Earnings season has been pretty bad so far and doesn't look to get any better. Caution look like the best course for now. Jerry