Jerry Samet
09-23-2014, 07:28 PM
The market sold off again today after weakness in Europe and airstrikes in Syria. The major averages opened lower and after a feeble rally attempt were weaker the rest of the session. Late selling caused all the major averages to close at their intraday lows. This is now the third day since the reversal from new highs on Friday that all the major averages finished at their lows of the day. The SPY was lower by .58% and the COMPQ was off by .42%. Small caps were once more the biggest losers as the RUT fell by .94%. Both the small and mid cap indices are looking pretty bad. Volume was very close to yesterday’s levels, with IBD saying it was lower across the board. This means that there was no distribution today, although Esignal had New York volume as slightly higher. Leading stocks were generally weaker on the day also, but the leaders index was higher by .47% on higher and slightly above average volume. Most of the components of the index were lower but strength in a few issues, mostly GPRO and SLXP, accounted for the increase in the index. It is still dancing with it’s important 17dma, and after breaking below this moving average then recapturing it, it is critical that it holds this support level. The rally is in serious trouble now as the major averages are weakening and quality growth stocks producing worth while gains are rare. A considerable degree of caution is warranted now. Jerry