Jerry Samet
05-09-2016, 05:53 PM
The market ended little changed today. After opening higher the major averages sold off and just bounced around the rest of the session before closing mixed. The Nasd averages were the strongest with the COMPQ gaining .30% and the NDX higher by .26%. The SPX was up by .08% while the DOW lost .20%. All the major averages finished low in their intraday trading ranges, a sign of a lack of support. Volume was lower across the board, so large institutional players were not heavily involved today. The market had a bit of a positive reversal on Friday as the major averages opened lower after the employment report but worked their way higher the rest of the day to close strong. Volume was slightly lower on Friday than it was on Thursday. Leading stocks were higher today with the leaders index gaining .40% and finishing in about the middle of it’s intraday trading range. After trading above it’s 50dma and also it’s short term 9dma and 17dma the index closed below these important support levels. The leaders index is now living below it’s 50dma, a sign of weakness, and it’s relative strength line remains weak also. The rally is struggling now, but it has not given up. It will take a show of strength from both the leading stocks and the major averages to improve the picture. Until that happens a good deal of caution is warranted. Jerry