Jerry Samet
10-25-2016, 06:06 PM
The market sold off today and reversed a bit over half of yesterday’s gains. The major averages opened lower and worked their way down the rest of the session. The COMPQ finished with a decline of .50% while the SPX fell .38%. Both closed at their intraday trading lows, a sign of a lack of support. Volume was higher across the board but still below average. This was enough to add a new distribution day on all the major averages. Leading stocks lost ground as well with the leaders index declining .88% on the day. The index closed high in it’s trading range and remained above it’s short term moving averages. Yesterday was a positive day and the market advanced. It did so however on lower volume. Today the major averages gave back a little more than half those gains and did so on higher volume. We remain stuck in a pretty much trendless environment and it is tough to figure out what the market is going to do. Trendless markets are the hardest ones as it is easy to get whipsawed. The current central bank action makes this even worse. A good sized cash cushion is a good idea right now. Jerry