Jerry Samet
09-17-2016, 12:25 PM
The market sold off yesterday, but it was a fairly mild decline. After opening lower the major averages bounced around in negative territory all day before a little late strength saw them close off their intraday trading lows. The Nasd averages showed more strength as they closed high in their intraday trading ranges while the New York averages finished in the lower half of their trading ranges. The COMPQ was lower by .10% while the SPX declined .38% Volume was higher across the board. This was caused by the quadruple expiration, but it still added a distribution day on the New York averages. That brings the total to eight on the SPX, a high number. Leading stocks did better than the overall market with the leaders index rallying .35% on much higher and above average volume. The index closed near the top of it’s trading range and is above all it’s short term moving averages. The relative strength line of the leaders index moved further into new high ground, a good sign. The market continued it’s recent pattern of wide trading ranges yesterday. There have been a few solid breakouts in the last few days, the best looking among them being, in my opinion, ESNT, XRS and GIMO. How these stocks act going forward will tell us a lot about the future strength of the rally. We are waiting for the Fed announcement on Wednesday of next week. That will set the tone for at least the short term. Jerry