Jerry Samet
05-18-2021, 06:23 PM
It was a pretty negative session overall today. The major averages opened mixed, but closed weak. The Nasd averages opened higher while the New York averages started off lower. After a brief rally by the Nasd averages selling came in and all the major averages finished at their intraday trading lows. The New York averages were the weakest with the SPX off by .85%. The COMPQ and the NDX declined by .56% and .72% respectively. Volume was higher across the board. It gained 9.22% on the New York and 8.45% on the Nasd. This, combined with the price declines showed that large institutional players were selling stocks today and produced a distribution day on all the major averages. Leading stocks were weaker as well with the leaders index off by .90% on the day. The index closed near its lows after trying to regain its 50dma early. Volume was higher, showing distribution in the leaders index. The market acted poorly today. Early strength in the Nasd averages didn’t last as selling came in. There was heavy selling near the close and the market finished very weak. The higher volume showed institutional selling and the distribution count is high. After weakness early last week there was some strength late in the week. That didn’t last this week and the market is showing real weakness here. There is no trend right now and we are just chopping back and forth, with an overall downward bias. This is the kind of market where traders trying new positions can get chewed up. I have always said that you should be in the market when it is easy to make money. It isn’t easy now. Jerry