Jerry Samet
02-06-2023, 06:25 PM
The market continued its pullback today. The major averages opened lower and traded mostly sideways after that. The Nasd averages took the worst of it and closed low in their intraday trading ranges. The New York averages finished in the upper half of their trading ranges. The COMPQ and NDX fell 1.00% and .87% respectively. The SPX declined .61%. Volume was lower across the board, showing that there was not heavy selling pressure today. Leading stocks were lower as well with the leaders index losing .71% on the day. The index closed in about the middle of its trading range on lower and below average volume. The index remains above all its short term moving averages. The market continued to pull back after last week’s strength. It is not unusual to have some weakness after a strong rally and this one seems to be pretty orderly so far. The lower volume today showed that large institutional players were not heavy sellers of stocks today. This continued the recent pattern of higher volume on up days and lower volume on declines. This is an encouraging volume signature. The Summation Index turned lower today and that shows that there will likely be some more pull back but it doesn’t change the overall picture. I still think that after a little weakness here the rally should resume. Jerry