Jerry Samet
10-09-2016, 11:58 AM
The market traded in mostly negative territory on Friday and the major averages closed with moderate losses. The COMPQ lost .27% while the SPX declined .33%. The Nasd averages closed in about the middle of their intraday trading ranges while the New York averages finished low in their trading ranges. Volume was mixed on the day. It was higher on the New York and above average while it was a bit lower on the Nasd. This was enough to produce a new distribution day on the New York averages. Leading stocks were generally lower on the session with the leaders index down by .42%, slightly more than the overall market. The index closed in about the middle of it’s intraday trading range and continues to to trade within the consolidation range it has been in for a couple of weeks now. On the positive side the index again held above the important short term 17dma. Volume on the index was lower and well below average. We continue in the situation we have been in for a while. The Nasd averages are acting the best but they have been unable to break into new high ground for a couple of weeks. The New York averages are acting much worst. They can’t seem to rally above their 50dma’s, which is a very negative sign. This is maybe the most important moving average of all. The current rally is in some real trouble right now. Many leading stocks are basing now and how the resolve these bases is will tell us a lot. The market has been unable to overcome real resistance lately and the longer it remains in the current situation the greater chance the ultimate resolution will be to the downside. The question we have to ask now is will the central banks allow a real decline or will they step in again to rescue the markets. It is hard to answer that question right now. Jerry