Jerry Samet
09-12-2015, 12:28 PM
After a solid start the market saw a little weakness mid session before late strength saw the major averages close at their intraday highs. The COMPQ had a gain of .54% while the SPX rose .45%. Volume was lower across the board so there was little conviction in the day’s action. Leading stocks were generally higher on the day as well. The new index I put together showed a loss of 3.29% on the day, but that was again due to one stock,EFOI, falling 28.57% on the day. This stock is down over 40% in two days and is distorting the index. This can happen when you have a small index like the current one. I will look this weekend for a new component to replace this one. The market continues to trade wildly. There were solid gains on the week, but the major averages are trading in a pattern in the lower part of the decline we had a couple of weeks ago. How the major averages break out of this pattern will tell us a lot. I still think the 200dma on the COMPQ is the real line in the sand and the index remains 1.9% below this resistance The major averages must break above these resistance levels to have any chance of moving higher. Jerry