The market opened strong today as all the major averages made new intraday highs for the move. They then lost all those gains and started selling off hard after the Fed announcement. After closing a little off the lows the major averages sold off between .49% on the SPY and .55% on the COMPQ, near the bottom of their intraday ranges. Volume was mixed, very slightly lower on the Nasd and higher on the New York. This produced distribution on all the New York averages. The COMPQ just barely missed distribution. The major averages had the look and feel of a reversal day today. Leading stocks had another tough session as the leaders index fell 3.46% on higher and well above average volume, even higher than yesterday’s volume spike. The index is now back below it’s important 17dma. The RS line of the index made a new low today and closed below it’s 50dma for the first time and has extended the pattern of lower highs and lower lows. Stocks that have been the leaders all year are breaking down. Stocks like TSLA and LNKD have broken patterns and even leaders that have been holding up well, like FLT are breaking important support. The evidence is building fast that the rally is over and we are waiting for the major averages to confirm the weakness in the leaders. Jerry
Reply With Quote
