Jerry Samet
07-06-2015, 11:30 PM
The market opened lower today after the no vote in Greece and had some substantial losses early. The intraday lows were made in the first ten minutes and then a rally attempt brought the major averages to about unchanged before selling off again. A late rally allowed the market to close off it’s lows, but that is about the only good thing you can say about today’s action. The COMPQ finished with a decline of .34% while the SPX fell .39%. Both closed in about the middle of their intraday trading ranges. Volume was higher across the board, so there was a new distribution day on all the major averages. Leading stocks got hit as well with the leaders index falling .74% on heavier but below average volume. This shows distribution on the leaders index as well. The index danced with it’s 50dma again but closed just above it. This is the third time in the last five sessions that the index has traded below the 50dma during the session but regained it before the close. When a stock or index keeps hitting an important support level it is likely to eventually break below it. The index is still trading between it’s declining 9dma and the 50dma. They are getting close together and we will likely know soon which way it will break. The charts of both the major averages and leading stocks are looking pretty sickly. The picture is getting darker, and while there could always be another rally that takes the market higher, protecting capital is the most important thing right now. Jerry