Jerry Samet
11-30-2016, 07:07 PM
The market started out pretty strong this morning, but then staged something of a reversal. After opening higher the major averages peaked in the first half hour and spent the rest of the session declining. Late selling saw all the major averages close at their intraday trading lows. The COMPQ fell 1.05% on the day while the SPX was lower by .27%. Volume was much higher across the board and was above average on both exchanges. 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 1.54% on the day on higher and above average volume. The index fell below its short term 9dma for the first time since the recent advance began. The index finished low in its trading range. The important 17dma is the next level of support for the index. If this level is broken it will be a big negative. The market staged a negative reversal today. The Nasd averages were hit much harder than the New York averages and the NDX broke below its 50dma. The action of the last couple of days hasn’t been enough to really darken the picture much, but a reversal like today’s is something to keep an eye on. A bit of a sell off after the recent advance is not unusual, but if it goes much farther the stress levels will increase. Jerry