It was another ugly session yesterday. The major averages opened mixed, about flat on the New York averages and strong on the Nasd averages. There was strength in the Nasd averages because AMZN came out with great earnings and the stock took off in the after market. Recently when big cap tech stocks came out with blow out earnings the market, particularly the Nasd averages, took off. That didn’t happen this time. The market topped at the open and sold off the rest of the day. The COMPQ finished lower by 1.12% while the SPX fell 1.07%. Both broke back below major support. Volume was mixed, slightly higher on the New York and a bit lower on the Nasd. This produced another distribution day on the New York averages. Leading stocks sold off as well, but a bit less than the overall market. The leaders index fell .90% on higher volume. This broke the recent pattern of declining volume as the index consolidated and produced distribution on this index. The index also broke below it’s 9dma that had been providing support. This is a short term moving average but is the first line in the sand. The Nasd averages broke to new highs in a big cap tech rally based on good earnings reports. They have now lost all those gains and are back in their previous trading ranges. We are in a trendless late cycle situation when making progress is very difficult. Frankly I don’t think it is even worth playing around in this environment. The beach is nice right now. Jerry
Reply With Quote