Jerry Samet
03-09-2019, 12:31 PM
The market started off weak yesterday on a weaker than expected employment report and news that trade talks might not be going as well as had been thought. The major averages opened lower and bounced around in negative territory before late buying caused them to make up most of the declines. All the major averages finished near the top of their intraday trading ranges, a sign that there was buying as lower prices. The New York averages were slightly weaker with the SPX lower by .21% while the COMPQ declined .18%. Volume was lower across the board. Leading stocks did a little better than the overall market with the leaders index higher by .17%. The index also recovered early losses and closed high in its trading range. It did however remain below its important 17dma resistance level. Volume was lower and about average. The market looked like it would put in a negative overall session yesterday, but late buying came in to support both the major averages and the leaders index. There was something of a positive reversal as significant losses were erased and the market closed near its highs. The major averages and the leaders index face a major obstacle right now in important moving averages that provide real resistance. The major averages would have to regain their 200dma’s to improve the picture. When an average or an individual stock break above an important moving average and can’t hold above it then lower prices are usually ahead. The major averages must regain their 200dma’s and the leaders index must get back above its 17dma. If they can’t then lower prices are likely ahead. Jerry