Jerry Samet
02-11-2016, 09:44 PM
It was another ugly session today. The major averages opened lower and worked their way down most of the day. There was a little late rally on news that OPEC might agree on some production cuts, but all the major averages closed with significant losses. The Nasd averages did better than the New York averages on some strength in big cap tech stocks after CSCO’s good earnings report. The COMPQ tried to rally and got into positive territory for a little while until some weakness saw it close with a loss of .39%. The SPX did much worse, falling 1.23% and closing in about the middle of it’s intraday trading range. Volume was higher across the board and well above average. This shows that large institutional players were selling stocks. It also produced distribution on all the major averages. Leading stocks did a little better than the overall market with the leaders index gaining .01%. It closed in about the middle of it’s trading range. Volume was higher than yesterday and slightly above average. The index again tagged it’s 200dma at it’s lows but closed above it. The index has been dancing with this important moving average for the last four sessions. When the price of an index or stock repeatedly tests a support level it usually ends up breaking below it before to long. The market can’t stage any kind of rally despite it’s large decline. Such a rally would be welcome as it would provide a chance to put on some short positions. Jerry