Jerry Samet
06-21-2023, 06:42 PM
The market continued its recent correction today. The major averages opened lower and after a rally attempt sold off into the close. All the major averages closed low in their intraday trading ranges. The Nasd averages were the weakest with the COMPQ and the NDX falling 1.21% and 1.35% respectively. The SPX declined .52%. Volume was mostly lower. It was down on the New York and flat on the Nasd. Leading stocks were lower as well with the leaders index off by .36% on the day. The index closed in about the middle of its trading range on higher and slightly above average volume. The index closed below its 17dma support level for the first time since it broke out of its consolidation about a month ago. The market continued its recent pullback today. Powell’s testimony before Congress may have caused some selling. So far the pullback seems to be pretty orderly. The Nasd averages took the biggest losses but they have had the largest gains in the rally. The selling in the last few days has been on mostly lower volume. This shows a lack of real selling pressure and that large institutional players are not dumping stocks here. A lot of short term indicators are flashing warning signals. The A’s minus E’s and the Summation Index have both turned down in the last couple of days. The leaders index broke important short term support at its 17dma. I would expect some more weakness right now, but so far it seems like a pretty standard pullback after a rally. Jerry