Jerry Samet
04-28-2020, 06:47 PM
The market opened with solid gains today. The major averages gapped higher at the open but topped out in the first few minutes of trading and spent the remainder of the session working their way lower. Late selling saw all the major averages finish at or very near their intraday trading lows, showing little support as prices fell. The Nasd averages were the weakest as many big cap tech stocks sold off. The COMPQ and the NDX lost 1.40% and 1.81% respectively. The SPX declined .52%. Volume was higher across the board, but only by a small amount on the Nasd, where it gained only .46%. It was higher by 10.67% on the New York. This is enough for distribution days on all the major averages, although the small increase in Nasd volume could see a different result from other data feeds. I will let IBD call this one. Leading stocks sold off as well with the leaders index falling 1.22% on the day. It closed near the bottom of its trading range but held above its 9dma. Volume was a little higher but below average. This shows distribution in quality growth stocks. The market had something of a nasty reversal today. The major averages opened with gains following stronger action in Europe. The positive action didn’t last long as selling came in and all the gains were erased and then some. There was distribution today in the major averages and leading stocks. The leaders index held just above its short term 9dma. If the index breaks this support it will be negative. Yesterday the A’s minus E’s turned down and continued lower today. This by itself is not reason to get to negative, but it is something to keep an eye on. The trend appears to still be higher, but there are some negatives out there. Jerry