Jerry Samet
08-05-2023, 10:29 AM
The market suffered a nasty reversal yesterday, the second of last week. After building solid gains early the market sold off hard into the close. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell .36% and .51% respectively. The SPX was off by .53%. Volume was lower on the Nasd and about flat on the New York. Leading stocks were off as well with the leaders index falling .59% on the day. The index closed in about the middle of its trading range on higher and above average volume. The market had a nice gain going after recent weakness, but it all dissolved later in the day. There was a news story that several hospitals were shut down by cyber attacks and that seems to have triggered some selling. The employment report came in pretty close to expectations so that didn’t have to much of an effect on trading. The market tried to stage a recovery after recent declines, but it didn’t hold. If it was the news story about the hospitals or just general weakness we don’t really know, but the market looks like it is set up for something of a correction. After the strong advances year to date and rest here would likely be constructive. I expect to see more corrective action here in the short term, but the outlook for the rest of the year still looks pretty good. Jerry