Jerry Samet
05-19-2021, 06:27 PM
The market opened sharply lower today, possibly on inflation fears or a big Crypto sell off. The major averages opened lower but they found a bottom early and rallied for most of the remainder of the session. All the major averages finished at or very near their intraday trading highs, a sign of support. The Nasd averages recovered the most with the COMPQ and the NDX about even on the day. The COMPQ was lower by .03% while the NDX was higher by .15%. The SPX fell .29%. Volume was mixed. It fell 1.77% on the New York and rose 1.29% on the Nasd. There was no distribution today as the decline in the Nasd averages was to small to qualify. Leading stocks sold off today with the leaders index falling 1.02% on the day. The index closed high in its trading range and volume was a lot higher and well above average. The market recovered most of its early losses today, but despite the recovery it was not a particularly encouraging session. The Nasd averages, along with the leaders index, remain below their important 50dma’s, which is very negative. The New York averages traded below this important moving average but regained it during the day. Leading stocks are not doing well as can be seen in the chart of the leaders index. It is still below its 50dma on both a price and a relative strength basis. Breakouts are not acting well and It is very difficult to make any progress in the current market. With that being the case one should be very careful taking on risk. Jerry