Jerry Samet
10-26-2018, 07:26 PM
The market sold off pretty hard again today. After gapping lower at the open the major averages staged a rally attempt that brought them back to nearly the starting point. The rally didn’t hold and the major averages sold off again. They all finished in about the middle of their intraday trading ranges, showing a little support. This is about the only positive you can put on the sessions action. There were still substantial losses with the COMPQ and the NDX off by 2.07% and 2.34% respectively. The SPX declined 1.73%. All made new intraday lows for the move. Leading stocks were lower as well with the leaders index falling 2.02% on the day. The index closed in about the middle of its trading range, just like the major averages. The index tagged its long term 200dma at its lows, but held above this moving average, still support, level. Volume was higher and well above average, showing that there was some real selling pressure in quality growth stocks. The action of the market continues to be negative. Although there was some support as both the major averages and the leaders index closed off their lows, but the charts continue to deteriorate. The leadership has pretty much been blown apart as most stocks that have led the market higher both recently and over the last couple of years have broken down badly. Many are showing clear cut topping patterns like late stage base failures and head and shoulder patterns. All the major averages are firmly in intermediate correction range. Nothing goes straight down just like nothing goes straight up so some rallies are to be expected along the way, but the trend in prices is clearly lower right now. Jerry