Jerry Samet
04-19-2017, 06:13 PM
The market started out with a solid rally today and it looked like it would be a strong session. After only a half hour of trading the major averages topped out and began a downtrend that lasted the rest of the session. The New York averages were the weakest with the SPX losing .17% while the COMPQ produced a small gain of .23%. Both were well off their highs and all the major averages closed at their intraday trading lows, a sign that there were sellers as prices rose early. Volume was higher across the board and about average on the New York. This would have been a good sign if prices had closed strong, but it isn’t good when prices reverse and give up all their gains. Leading stocks did a bit better than the overall market with the leaders index rallying .66% on the day. It also lost most of its early gains and closed in the lower half of its trading range. This was however off its lows. The index broke above its 9dma and tagged its 17dma, but couldn’t overcome it. Volume on the index was higher and above average. Overall the action of the market today has to be considered negative. After strong early gains the market rolled over and lost them. Strong openings and weak closes are the hallmark of a market that is headed lower. The leaders index must now break above the important 17dma and then on to new highs to change what is starting to look like topping action in the chart. The New York averages remain under their 50dma’s and are starting to live there. The Nasd averages are somewhat stronger but still look like they are in at least a short term downtrend. There must be strong movement into new high ground in both the major averages and leading stocks to overcome what looks increasingly like a struggling market. Jerry