Jerry Samet
06-24-2020, 06:45 PM
The market got hit pretty hard today on worries that there is a resurgence of the Coronavirus. The major averages opened lower and sold off much of the session before it stabilized. The losses were pretty evenly divided with the COMPQ and the NDX declining 2.19% and 2.03% respectively. The SPX fell 2.59%. All the major averages closed low in their trading ranges, a sign of weakness. Volume was mixed. It was lower by 2.24% on the Nasd and higher by 24.12% on the New York. This, combined with the price decline was enough for another distribution day on the New York averages. Leading stocks were lower as well with the leaders index falling 2.05% on the day. The index closed in the lower half of its trading range and volume was a bit higher. This showed distribution in quality growth stocks as well as the New York averages. The index did hold its short term 9dma support level. The market took a hit on concerns about an increase in Covid cases as the country reopens. We got additional distribution and the count on the SPX is getting a little high, although it remains low on the COMPQ. Important support held today as the SPX remained above its 200dma and the leaders index stayed above its 9dma. The charts of the major averages and the leaders index still look ok. The leaders index remains above its short term moving averages so little damage has been done. On the chart of the COMPQ today’s decline looks a lot like declines on 6/11 and 5/13. Those were recovered quickly. Right now the overall picture still looks favorable, but another day or two like today would change that. Jerry