Jerry Samet
03-15-2016, 07:28 PM
The market again closed little changed today. After early weakness the major averages worked their way higher for the rest of the session. The DOW was the only average to close in positive territory while the COMPQ closed with a loss of .45% and the SPX lost only .18%. All the major averages, except the small and mid caps finished near the top of their intraday trading ranges. Volume was lower on the New York according to Esignal but IBD has it higher. Either way there was no distribution on the New York averages because the Dow closed higher while the SPX lost less than the threshold. The COMPQ is a different matter as higher volume there along with an almost half percent loss produced distribution. Leading stocks were generally lower with the leaders index falling .72% and closing in the lower half of it’s intraday trading range. The index tagged the important 17dma and closed right on it’s short term 9dma. The index continues to consolidate while the short term moving averages have caught up. It is very important for the index to hold the 17dma and it would be very negative if it broke below this support level. The relative strength line of the index continues to deteriorate and the pattern of lower highs and lower lows continues. The charts of the major averages remain intact and the chart of the leaders index is flat. The distribution count on the Nasd averages is getting pretty high, and this is a major concern. We are still in a position where few if any quality growth stocks are acting well and this is the ultimate factor. It remains a very difficult market to make any progress in. Jerry