Jerry Samet
11-03-2016, 06:14 PM
The market made a feeble attempt to rally at the open, but it didn’t last. After a few minutes the major averages started to sell off and continued lower for the rest of the session. The COMPQ closed with a loss of .92% while the SPX declined .44%. A lot of the decline in the COMPQ was due to FB as it sold off after it’s earnings report after the close yesterday. Volume was lower across the board, but only slightly on the Nasd. It was also above average. All the major averages again closed at their intraday trading lows, a sign of weakness. Leading stocks were lower as well, but today they declined less than the overall market. The leaders index fell .32% and it closed just above the midpoint of it’s trading range. Volume was lower than yesterday, but still was very high and well above average. The 9dma has now broken below the 50dma and the 17dma is close behind. The market has now sold off for eight days in a row and can’t seem to stage even a weak rally. This is very negative and usually points to lower prices ahead. After a decline like we have had in the last couple of weeks a bounce is overdue. The strength of that bounce will tell us a lot about whether the worst is over. The way things look a bounce here is more likely to be a shorting opportunity. Jerry