Jerry Samet
11-02-2016, 07:01 PM
The market continued it’s recent string of losses today. The major averages opened lower and were down the entire session. The Fed announcement today didn’t do much either way as the results were as expected. The COMPQ finished with a loss of .93% and the SPX declined .65%. Both closed almost at the lows of their intraday trading ranges, a sign that no one was interested in buying stocks as prices fell. Volume was mixed on the day, higher on the Nasd and lower on the New York. This produced another new distribution day on the Nasd averages, increasing an already high count. Leading stocks are being crushed. The leaders index fell another 1.93% on enormous volume. The chart of the index is showing a strong decline as it falls further below the 50dma and the short term 9dma and 17dma also are just about to break below it also. The relative strength line of the leaders index broke also broke below it’s 50dma. The stocks that have led the rally since it began are broken. The afterhours sell off in FB after it’s earnings report will not help. Today’s action continued the recent negative trend. The charts of both the leaders index and the major averages are badly broken. The NYA even closed below it’s 200dma today. The rally is dead. The real question now is how far this decline will go, or be allowed to go. Jerry