Jerry Samet
06-19-2015, 07:24 PM
The market sold off today. After a slightly lower open the major averages worked their way lower for the rest of the session. The COMPQ fell .31% while the SPX declined .53%. All the major averages finished at their lows of the day. The SPX held the 50dma that it retook yesterday. Volume was higher across the board and well above average. This was due to the quadruple expiration that occurred today. This increase in volume produced distribution days on all the major averages, bringing the total count to six. This is high, but today could be lessened by the expiration. Leading stocks declined also, but the decline was fairly mild. The leaders index fell .59% and closed in about the middle of it’s intraday trading range. Volume was very high, but much of this was caused by a high volume reversal in AMBA. This is the best performing stock of the last few months and this action is something to watch. If other quality growth stocks do the same thing it will be very negative. The leaders index has now had two days in a row of declines on rising volume. We had this on 6/8 and 6/9 and the index recovered. The leaders remain above the short term 9dma and the chart still looks ok, but this must correct itself pretty quickly. Other than the distribution count there are few real red flags out there right now and barring further weakness things still look fairly solid. Jerry