Jerry Samet
02-09-2019, 12:49 PM
The market had a fairly positive reversal yesterday. It opened lower and it looked like there would be another decline. Some support came in and the major averages regained the losses and closed with small gains. The Nasd averages were slightly stronger with the COMPQ and the NDX higher by .14% and .12% respectively. The SPX gained .07%. All the major averages finished at their intraday trading highs, showing support for the market. Volume was lower across the board. Leading stocks followed the same pattern as the overall market. The leaders index traded lower and even traded below its important 17dma. It rallied back and closed high in its trading range above the 17dma. It still however remains below its short term 9dma. Volume was lower and below average. The market started off weak but buying support came in and the market rallied. This is positive as it shows there were buyers at lower prices. The INDU and the SOX both lost there 200dma’s and regained them yesterday. The A’s minus E’s flattened out two days ago and turned slightly down on Thursday. It flattened out again yesterday so this indicator is in flux and we will have to see which way it breaks. The market is very news driven right now so there are moves in both direction caused by news stories. The bottom line right now remains the 200dma on the major averages. The charts still look like the major averages are struggling to overcome this major resistance level. If they can, particularly with strong volume, a run for the old highs may be in the cards. If they can’t then the current rally has pretty much run its course and lower prices are the likely outcome. Jerry