The market put in a mixed performance with a slightly downward bias. After opening a bit higher the market sold off hard after two Fed governors made comments saying they were against further rate cuts. They quickly bottomed and spent the rest of the session regaining about half their losses. All the major averages finished close to the mid points of their intraday trading ranges. The Nasd averages were the weakest with the COMPQ and the NDX losing .36% and .33% respectively. The SPX was off only .05%. Volume was mixed. It was lower by 4.89% on the New York and higher by 4.22% on the Nasd. This combined with the price declines produced a new distribution day on all the Nasd averages. Leading stocks were lower today with the leaders index falling .83% on the day. It tagged its short term 9dma at its lows but rallied back up. The index closed high in its trading range, a good sign. Volume was lower and well below average, what you want to see as prices pull back. The market was a little weak today, but the losses were pretty mild. We got another distribution day on the COMPQ but the total distribution count is still pretty light. The market appears to be unstable right now and I think the risk level is high. The chart of the leaders index is good and you want to see quality growth stocks acting better than the overall market. The major averages are still struggling. Their 50dma’s are still providing real resistance. They must overcome this important moving average with volume or prices can’t go much higher. I have friends in town this weekend so the updates will resume on Tuesday. Jerry
Reply With Quote