Jerry Samet
11-02-2017, 07:01 PM
The market was mostly lower today. After trading in negative territory all day some late strength cut the losses. The major averages closed mixed on the session with the most strength in the New York averages. The SPX was up just .02% while the narrow DOW continued to outperform with a gain of .35%. The Nasd averages lagged as the tech stocks took a break after recent gains. The COMPQ was lower by only .02%, but the NDX fell .20%. All the major averages finished at or near the top of their intraday trading ranges as late buying came in. This is a sign of some support. Volume was higher across the board, not what you want to see with the market digesting gains. Leading stocks followed a pattern similar to the overall market. Early losses were mostly recovered and the index closed in the upper half of its trading range. The index declined .53% on the day and tagged the short term 9dma at its lows. Volume on the index was lower than yesterday but well above average. The market seems to have entered another short consolidation as it digests recent moves into new high ground. The charts of the leaders index and the major averages still look ok and no real damage has been done. However there are a couple of things that are worth watching. The number of new lows has been expanding in the last few days and some big cap tech stocks that have reported great earnings did not rally like they did last week. The last two trading days on the chart of the leaders index, the two red candles on large volume spikes, are a bit worrisome also. But there is no real damage yet. It looks like the market, particularly the tech stocks that have led recently, are taking a break, but the picture still looks encouraging. Jerry