Jerry Samet
08-13-2015, 11:15 PM
After a reversal like yesterday you would like to see the market follow through on it with more positive action. The major averages tried to rally but by the close couldn’t hold any gains. Both the COMPQ and the SPX ended the session with small losses of .21% and .13% respectively. Both closed near the bottom of their intraday ranges, showing little buying interest among large institutional players. Volume as also lower across the board. Leading stocks were higher on the day with the leaders index climbing 1.01%. The index also closed low in it’s intraday trading range and volume was very low. The leaders index chart is developing an interesting pattern. For the last five trading sessions the index has bumped up against the confluence of the 9 and 17dma’s. It has been unable to get above these important short term moving averages. On the other side a rising 50dma has provided support on the one time the index approached it. If the index can’t get back above this resistance it has little chance of staging a rally. The weakness in today’s action does little to inspire confidence. Jerry