Jerry Samet
06-12-2017, 05:35 PM
The market continued lower today, but without selling as strong as we saw on Friday. The best thing you can say about the action is that all the major averages closed at their intraday trading highs, a sign of some support. The COMPQ was lower by .52% while the SPX declined only .10%. Volume was lower across the board, so there was no new distribution on the session. Leading stocks mostly continued to see selling as the leaders index fell .68% on the day. Volume was huge and even higher than Friday’s level. This showed continued selling pressure, particularly in tech stocks, and produced another distribution day in leading stocks. Like the overall market the leaders index closed high in its trading range, so there was some buying as prices fell. The index fell below its short term 9dma but held its 17dma. After a big decline you look to the quality of the bounce to try and determine if the worst is over. Today’s action was not particularly encouraging. Prices continued to decline, and although both the leaders index and the major averages closed high in their trading ranges, it wasn’t convincing. In the recent past every sell off has been followed by a strong rebound. We did not see that today. If there isn’t a rebound quickly and with some real conviction we could see lower prices ahead. Jerry