Jerry Samet
06-24-2014, 11:40 PM
The market had a nasty reversal today. It started out strong with the major averages making new highs for the move, but a little more than an hour into the session everything started selling off and the decline continued into the close. The SPY led the way down with a loss of .64% while the COMPQ fell .42%. Small caps were the biggest losers of the day with the RUT declining .99%. All the major averages closed at their lows of the day, showing that there was support going into the close. Volume was higher across the board, so there was distribution on all the major averages. Leading stocks started off higher along with the over all market, but they couldn’t hold their gains either. The leaders index was lower by 1.50% on slightly higher but below average volume. The index closed near it’s intraday lows and tagged it’s important 17dma. The index recovered from it’s lows and finished right on it’s 9dma. Quality growth stocks took some hits today and FB tried to break out early but couldn’t hold it’s gains in the face off the sell off. It closed just below the pivot point in it’s handle. Reversal days like we saw today are dangerous. This was the worst day since the rally began, and while the damage was limited it was a shot across the bow. We must recover quickly and with some conviction. More days like today could kill the rally. Jerry