Jerry Samet
10-18-2016, 06:49 PM
The market rallied today from the opening and achieved intraday highs in the first half hour. After bouncing around much of the rest of the day some late weakness saw the major averages finish low in their intraday trading ranges. The SPX gained .62% on the session and closed just below the midpoint of it’s trading range while the COMPQ rallied .85% but closed at the bottom of it’s trading range. Volume was higher across the board, showing there was some buying pressure from large players. The late decline also showed that there were some sellers at higher prices. Leading stocks were higher as well but a bit less so than the overall market. The leaders index was higher by .46% and closed in the lower half of it’s trading range. The index is just below the important 17dma resistance level. It is stuck in a trading range that it has been in for several weeks. The index is trading between the 17dma on the upside and the 50dma acting as support. The moving average that is broken will be a good indication of at least near term direction. The market is clearly struggling right now and can’t seem to gain any momentum in either direction. A good deal of caution is warranted. Jerry