Jerry Samet
02-22-2018, 06:28 PM
The market put in another weak session today. In a continuation of its recent pattern the market opened higher and had solid gains early. After about two and a half hours of trading selling came in and the major averages sold off into the close. All the major averages finished at their intraday trading lows for the fourth day in a row. The COMPQ closed lower by .11% while the SPX was higher by .10%. Volume was lower across the board, so there was no new distribution on any of the major averages. Leading stocks were lower as well with the leaders index falling .49% on the day. It tagged its short term 9dma but closed above it. The index finished in the lower half of its trading range on volume that was lower and about average. The chart has flattened out in the last four days on about average volume. Today’s action continued the pattern of the last four days of strong opens and weak closes. This is a negative pattern. The market looks like it is struggling now. The New York averages could not hold their 50dma’s and look like they are putting in a pattern of lower highs. The Nasd averages are holding up better, but still look like they are weakening. The follow through of last week is in more trouble every day and right now it looks like it will fail. The odds seem to favor lower prices right now. Jerry