Jerry Samet
11-15-2017, 08:01 PM
The market had an overall negative session today. The major averages opened lower and were in negative territory all day. The COMPQ finished with a loss of .47% while the SPX fell .55%. unlike the last couple of days the major averages did not regain most of their losses and close at the top of their intraday trading ranges. The Nasd averages closed in the upper half of their trading ranges and the New York averages finished in the lower half of their trading ranges. Volume was slightly lower than yesterday so there was no new distribution in the major averages. Leading stocks were lower as well with the leaders index falling .65% , but closing in the upper half of its trading range. The index tagged its 17dma support level but held above it. Volume on the index was higher than yesterday, indicating distribution in quality growth stocks. Only twelve stocks in the IBD 50 were up on the session. The market is starting to look more sloppy. For three days in a row now we have seen sizable declines early. Monday and Tuesday the major averages rallied back to close with losses but at the top of their trading ranges. That did not happen today. The NYA, the broadest measure of NYSE stocks joined the RUT and the Transports below its 50dma. The number of new lows expanded again today and for the second day in a row were above the new highs and the number of stocks with an A accumulation/distribution ranking is falling fast. We have also seen two more Hindenburg Omen signals, making this the largest cluster since late 2007. It is too soon to say the current advance is in real trouble, but the warning signs are building. The House votes tomorrow on the tax reform bill and a yes vote could cause the market to rally, but the warning signs are increasing. Jerry