Jerry Samet
06-13-2018, 06:02 PM
It was a wild ride today, which is not unusual on a Fed announcement day. The market had a pretty good session going, particularly the Nasd and semiconductor averages. There were solid gains as the Nasd averages made new intraday highs. When the Fed Announcement came the market started selling off. It rallied back then sold off again into the close. All the major averages finished at their intraday trading lows. The COMPQ declined .11% while the SPX lost .40%. Volume was higher across the board and above average on both exchanges. This was enough to produce a fresh distribution day on the SPX. The decline in the COMPQ was too small to qualify as distribution. Leading stocks generally had a good session going as well. After early gains they sold off with the market. The leaders index was lower by .56% and closed in the lower half of its trading range. At its lows of the day the index tagged its short term 9dma support and closed well above it. Volume was lower and well below average. It is positive that quality growth stocks held above support and traded low volume. We had a pretty good session going until the Fed announcement. It is not unusual to see a lot of volatility on these days and the Fed hinted at more interest rate hikes. It is never fun to see these kind of reversals, but the damage done today doesn’t look bad. The chart of the leaders index looks good and the market itself is acting well. The action on Fed days is often reversed the following day. The picture is still good. Jerry