Jerry Samet
10-20-2018, 12:54 PM
The market started off strong out of the gate yesterday as the major averages showed solid gains early. It didn’t last as the major averages topped out a little more than a half hour into trading and spent the rest of the session selling off. All the major averages ended the session at or very near their intraday trading lows. The Nasd averages were again the worst performers of the major averages with the COMPQ and the NDX lower by .48% and .12% respectively. The SPX was about flat with a decline of .04%. There was much greater weakness in some of the secondary averages like the SOX, which fell 1.55% and the small and mid-cap stocks. Volume was mixed. It was higher on the New York and very slightly lower on the Nasd, according to Esignal. Leading stocks had a tough session as well with the leaders index falling 1.67% on the day. The index closed near the bottom of its trading range and volume was slightly higher than Thursday and a bit above average. The action yesterday was again disappointing. The market opened strong and closed weak. This is the signature of a weak market that is likely headed lower. Leading stocks continued to sell off, reinforcing the negative action in the overall market. The SPX is sitting right on its 200dma while most of the other averages are below this long term moving average. There are some important companies reporting earnings next week and that may give a boost to the market if they are good, but so far earnings reports have not done the market much good and the rally last Tuesday didn’t last. The odds at this point favor lower prices ahead. Jerry