Jerry Samet
02-28-2018, 06:43 PM
The market got hit again today. After some early strength the major averages were hit by selling and all the gains were gone. The major averages all finished at their intraday trading lows, a sign of weakness. The COMPQ was lower by .78% while the SPX declined 1.11%. Volume was higher across the board and was above average on both exchanges. This showed that large institutional players were selling stocks. It also added another distribution day to all the major averages, the second in a row. Leading stocks were lower as well, but held up better than the overall market. The leaders index was off by .11%, less than the major averages. The index closed low in its trading range, but is still above its short term 9dma. It closed weak and volume was higher than yesterday but below average. There was no distribution here as the loss was to small. The relative strength line of the leaders index is in new high ground as they hold up better than the major averages in this period of uncertainty. The market is acting pretty poorly again. After a couple of rally days the major averages sold off hard for two days on higher volume. This shows that market participants are selling stock pretty strongly as distribution builds. The New York averages have all lost their important 50dma’s now that the SPX lost this support level today. All the New York averages now have rallied back above their 50dma’s and now fallen back below them. This is negative. The Nasd averages are holding up better but still look like they are struggling. The most positive thing out there now is that quality growth stocks are acting better than the market as a whole. The leaders index remains above its short term 9dma and its relative strength line has made new highs. Overall the action since the follow through on 2/14 has not been very good. We got stalling early and it was not well confirmed. The follow through is still in effect and will be until it is undercut or distribution builds to high, but recent action is not encouraging. Jerry