Jerry Samet
06-10-2015, 12:28 AM
The market opened lower and continued down for the first hour. The major averages then turned around and rallied for the rest of the day to finish close to unchanged on the session. The SPX finished up just .04% while the COMPQ declined .15%. Both closed near the top of their intraday trading ranges. The COMPQ regained it’s 50dma after trading below it much of the day and the SPX continues to trade below this important moving average. The 10dma on the SPX is now close to dropping below the 50dma. Volume was higher across the board, but the small moves mean there was no distribution. Leading stocks were slightly lower as well with the leaders index dropping .26% on higher and above average volume. This shows that there was some conviction in the selling of quality growth stocks. The index tagged it’s 17dma during the day but climbed back to close above the 9dma. That is two days in a row now of higher volume selling in the leaders index and the first time in weeks that there have been two down days in a row. This is the first real sign of weakness in the index in a long time. It remains a difficult market to make progress in and any profits will be hard won. Jerry