Jerry Samet
10-06-2014, 10:59 PM
The market opened strong today with all the major averages higher. It didn’t last as the major averages saw their intraday highs in the first fifteen minutes of trading. After that they worked their way lower all day and closed near their intraday lows. The COMPQ was off the most with a loss of .47% while the SPY was lower by .16%. Volume was mixed, higher on the Nasd and lower on the New York. This produced distribution on the Nasd averages. Both the COMPQ and the SPY rallied right up to their respective 50dma’s and were turned back. When a stock or an index break an important moving average and rally back but can’t get above it lower prices are usually ahead. Leading stocks got hit harder than the overall market with the leaders index declining 1.24% on lower and slightly below average volume. The index tagged it’s declining 9dma and was turned back. It is now trading between a declining 9dma and a still rising 50dma. The character of the index also appears to be changing. The last week has seen very wide and loose action compared to earlier trading, not an encouraging sign. Overall the action of both quality growth stocks and the major averages is negative. I don’t see much to get excited about right now. Jerry