Jerry Samet
10-19-2014, 01:34 PM
The market got off to a strong start on Friday as the major averages showed real gains in what looked like it would be a positive session. Later in the day the market got sloppy and lost a big part of those gains, although the major averages closed with worthwhile gains. The New York averages did the best as they all closed In the upper half of their intraday ranges. The SPY was higher by 1.29%. The Nasd averages didn’t do as well with the COMPQ higher by .97%. The disappointing news was how weak it was by the close. It finished near the bottom of it’s intraday range and well below it’s opening price. The small caps, which have led in the last few days sold off as the RUT declined .35%. The real issue was volume. It was lower across the board, and although it was above average it showed that there was not a lot of buying pressure from institutional players. Leading stocks also had a positive day with snap back action in many quality stocks. The leaders index rose 1.19% on the day in higher and above average volume. The index also lost early gains and closed near the bottom of it’s intraday range and below it’s open. You would want it to close stronger to improve the out look. Friday’s action was really not that encouraging. The real challenge now remains the 200dma of the major averages. The COMPQ almost tagged this important moving average on Friday and was turned back, which usually leads to lower prices. Until things get sorted out a little better the beach is the best place to be. Jerry