Jerry Samet
10-13-2016, 05:59 PM
The market had a pretty negative session today. The major averages sold off early, but bottomed out a little more than a half hour into trading. They spent most of the rest of the day regaining those losses, but still finished with solid losses. The COMPQ fell .49% while the SPX lost .31%. All closed high in their intraday trading range, a sign of support. Volume was higher across the board, showing that large players were active today. This was enough to produce a new distribution day on all the major averages. Leading stocks took a hit as well with the leaders index falling .81% on higher and well above average volume. The index closed slightly above the mid point of it’s intraday trading range. It fell further below it’s important 17dma and even traded below it’s 50dma for the first time in almost a month. The fact that stocks rallied off the lows and recovered most of the intraday losses is good, but it is about the only good thing that happened. The Nasd averages are now back below their respective 50dma’s and the New York averages fell further below theirs. The rally that has been going on for the last few months appears to be over. The question is will there be a meaningful decline or will we get the short sell off followed by a sharp reversal and a run to new highs. That has happened over and over again for the last two or three years. We will have to wait and see. I will be away for a few days, the updates will resume on Tuesday. Jerry