Jerry Samet
12-20-2021, 06:29 PM
The market put in an overall negative session again today. The major averages gapped lower at the open and sold off for a couple of hours. They then started working their way higher and all the major averages finished high in their intraday trading ranges. They still closed with real losses due to the gap at the open. The COMPQ and the NDX fell 1.24% and 1.10% respectively. The SPX declined 1.14%. Volume was lower across the board so there was no new distribution today. It fell 16.25% on the Nasd and 11.94% on the New York. Leading stocks were generally lower as well but did better than the overall market. The leaders index was flat with a gain of .04%, but other ETF’s of leading growth stocks were lower. The index held its 17dma support level on lower but slightly above average volume. The relative strength line of the leaders index made a new high. The market continued weak overall today. The recovery off the lows and the lower volume weakened the blow, but it was still a negative session. Volume may be low this week and next as market participants take time off for the holidays. The major averages have also undercut the lows of the follow through day, and this is very negative. That combined with the distribution so close to the follow through indicates that this follow through has already failed. I suspect that IBD will call it over today, but you never know if they will wait. Either way I see no reason to be buying stocks right now. Jerry