Jerry Samet
04-09-2016, 12:55 PM
The market opened stronger yesterday and it looked like we were going to continue last week’s pattern of reversing the prior day’s action. That didn’t last long as the major averages topped out less than an hour into trading and spent the rest of the session selling off. They closed the day little changed with the COMPQ higher by .05% while the SPX was up by .28%. Both finished at or near the bottom of their intraday trading range. This is not positive as it shows little buying support as prices fell. Volume was lower across the board and well below average. This shows that large institutional players were not heavily involved. Leading stocks were slightly higher as well with the leaders index gaining .30% on heavier and above average volume. Much of this increase in volume came from a volume spike in FB, which was down on the session. The index continues to consolidate along it’s important 17dma. This moving average is now the primary support for the leaders index. if it breaks below this level, particularly on heavy volume, it will likely show that the rally is in real trouble. The rally that started with the low on 2/11, the follow through on 2/17 and the weekly Coppock buy signal on 2/29 is acting labored. When the market opens strong and closes weak it is a very negative sign. The COMPQ is having a lot of trouble around it’s 200dma. There are signs that the rally is losing steam and gains should be protected. Jerry