Jerry Samet
08-18-2015, 11:35 PM
The market was in negative territory all day with the COMPQ falling .64% while the SPX declined .26%. Volume was very close to yesterday, but IBD called it higher on the New York and lower on the Nasd. This produced another distribution day on the New York averages. All the major averages finished at or near their intraday lows, so there was little support from large institutional players. The real damage was in the semiconductor stocks as the SOX declined 2.08% and set new lows. Leading stocks sold off as well with the leaders index declining .51% on higher but still below average volume. It was enough however to produce distribution on this index of quality growth stocks. The index closed low in it’s trading range but it still held slightly above it’s short term 9 and 17dma’s. The SPX broke back above it’s 50dma in yesterday’s rally and fell back below it today. When a stock or an index rallies back above an important support level and can’t hold it that is negative and usually produces lower prices. The charts of all the major averages are looking pretty sickly. The market is still stuck in a trendless trading range and it is very difficult to make any progress. Jerry