Jerry Samet
05-11-2016, 07:50 PM
The market gives and the market takes away. After rallying yesterday the major averages gave it all back today. After opening lower the major averages, in a mirror image of yesterday, sold off for the rest of the session and all finished at their intraday trading lows. The COMPQ fell 1.02% while the SPX declines .96%. Volume was higher across the board, so there was distribution on all the major averages. Leading stocks held up better than the overall market with the leaders index falling .69% on lower and well below average volume. The index closed low in it’s intraday trading range and is trading right at the confluence of it’s 9dma, 17dma and 50dma. It is still in the consolidation that it has been in for a couple of weeks and is trading in a much less volatile fashion than the major averages. The COMPQ was turned back at it’s important 50dma and several other important averages broke back below support levels. We continue to be in a struggle between a tired market and central bank intentions to prevent a decline. The result will likely be lower prices, but it is hard to tell when it will happen. Jerry