Jerry Samet
12-09-2019, 06:25 PM
The market opened slightly higher today after Friday’s rally, but it didn’t last. The major averages gained a little ground early but peaked within a half hour and spent most of the rest of the session selling off. The Nasd averages were a little weaker with the COMPQ and the NDX falling .42% and .41% respectively. The SPX declined .32%. The major averages all closed at their intraday trading lows, showing that there was little buying as prices fell. Volume was mixed. It was higher by 2.55% on the Nasd and lower by 6.89% on the New York. That combined with the decline in prices was enough to cause a distribution day on the Nasd averages. Leading stocks were lower as well with the leaders index declining .90% on the session. The index closed low in its trading range and back below its short term 9dma. It held support at its more important 17dma. Volume was also lower and below average. This means that there was no distribution in quality growth stocks. The market tried to rally early but couldn’t. Selling came in and the market sold off. The decline was much smaller than Friday’s rally, which is encouraging. It would have been better if volume on the Nasd was lower, as it was on the New York, and the distribution count is getting kind of high. Rallies never go straight up and there will be countertrend moves along the way but the market still looks like it wants to go higher into year end. I will be away for a few days and then will be going to the Masters seminar in Santa Monica. The updates will resume on Monday. Jerry