Jerry Samet
09-29-2016, 07:09 PM
The market got hit pretty hard today. After being slightly lower early the major averages dropped sharply on news out of Europe. Deutsche Bank is in some pretty serious trouble now and questions were being raised about the European banking system. This caused the financial stocks here to sell off and they took the market with them. All the major averages saw significant declines and closed near their lows of the day, a sign of a lack of support. The COMPQ lost .93% while the SPX declined by exactly the same amount. Volume was higher across the board and above average on both exchanges. This produced a new distribution day on all the major averages. Leading stocks performed about in line with the overall market with the leaders index falling .95% on the day. Volume was lower than yesterday and well below average, so the selling pressure in quality growth stocks was not that strong. The index closed in the upper half of it’s intraday trading range and geld above it’s short term 9dma. The chart of the leaders index looks better than the charts of the major averages. The leaders index is above all it’s short term moving averages and just below it’s highs. The Nasd averages are acting better than the New york averages, which are all back under their important 50dma’s. There are a lot of land mines out there as we saw today. We are certainly not in any kind of rip roaring bull market, but there havn’t shown any real signs that the current rally is over. Jerry