Jerry Samet
01-05-2016, 11:18 PM
After yesterday’s sell off you would like to have seen the market rally back today. It didn’t happen. After trading around unchanged most of the session the major averages ended mixed. The COMPQ fell .24% while the SPX gained .20%. Both averages finished near the bottom of their intraday trading ranges, a sign that there were few buyers out there. Volume was lower across the board today but was still fairly strong, with the Nasd volume being above average. Leading stocks were generally flat as well with the leaders index gaining .18% on the session on lower but about average volume. The index closed in about the middle of it’s intraday range, but remains below the important 17dma. The fact that if couldn’t regain this moving average is a big negative. Nothing that happened today improves the picture. The fact that the market couldn’t stage even a modest rally is a bad omen for the future direction of the major averages and individual stocks. As of this writing the futures were selling off on news that North Korea has successfully tested a hydrogen bomb. Not good news. I really don’t see any reason to be active in this market as nothing is really working. Cash looks good right now. Jerry