Jerry Samet
04-14-2017, 01:38 PM
It was a pretty negative session yesterday. After starting off a little higher the major averages topped out in a little over an hour and started selling off from there. The selling lasted into the close and all the major averages closed at their intraday trading lows, a sign that there was no buying interest as prices fell. The COMPQ finished with a loss of .53% while the SPX lost .68%. The greatest weakness was in the small and mid-cap stocks as the RUT and the MID each lost more than one percent. Volume was lower on the Nasd and very close on the New York. IBD had it slightly lower while esignal had it slightly higher, take your pick. Leading stocks were lower as well with the leaders index falling .50% on higher and about average volume. This was enough to produce distribution in quality growth stocks. The index tagged its 50dma during trading but managed to close above it but low in its trading range. The chart of the index is looking pretty weak and a break of the 50dma support level would be very negative. Right now all the major averages and most of the secondary averages are below their respective 50dma’s. The weekly Coppock turned down on all the major averages in the last three weeks and the distribution count is high. Many times in the last few years the market looked like it was going into a real sell off only to be turned around by actions from world central banks like massive QE and zero or negative interest rates. It could well happen again, but right now it looks like the rally that began after the election is either over or in real trouble. Jerry