Jerry Samet
10-01-2014, 11:12 PM
The market really got pasted today. After a down open the major averages sold off for the rest of the day and all closed at their intraday lows, the second day in a row that has happened. The COMPQ was weakest with a decline of 1.59% while the SPY was off by 1.32%. Volume was mixed, higher on the Nasd and lower on the New York. This produced distribution on the Nasd averages. We are also well below the critical 50dma on the major averages and the NYA is below it’s 200dma. Leading stocks were hit hard as well with the leaders index falling 4.06% on much heavier and above average volume. There are now two days in a row of heavy volume declines with the index closing near it’s lows. The 17dma is about gone now and the index came close to it’s 50dma, the last line in the sand for quality growth stocks. There was a lot of damage done today and it is hard to say there is anything left in the rally. There have been many times recently when the market looked like it was going into a real correction only to turn around again. That could happen again, but for now you have to protect your capital. Jerry