Jerry Samet
08-15-2023, 06:26 PM
The market sold off further today as the correction deepened. The major averages opened lower and it was mostly down hill from there. All the major averages finished near their intraday trading lows, a sign of weakness. The COMPQ and the NDX fell 1.14% and 1.10% respectively. The SPX declined 1.16%. Volume was higher on the Nasd and very close on the New York. In fact the New York volume was so close that different data feeds could have different results. This is distribution on at least the Nasd averages. Leading stocks were lower as well with the leaders index falling 1.19% on the day. The index closed in about the middle of its trading range on higher and above average volume. The market was weak today. There was stronger than expected economic news plus the weak economic reports from China. Volume was higher on the Nasd giving those averages a clear distribution day. The New York volume was very close and I will let others call distribution there. The action today was pretty negative. Yesterday’s rally was almost completely wiped out. The Nasd averages came back up to their 50DMAs( The NDX even got above it) but fell back below these important moving averages. This is poor action as this moving average is now resistance for all the majora averages. I think it is pretty clear we are in a correction and the 8% down level is the real key here. If it holds this will be a pretty minor correction. If it doesn’t there could be a lot worse ahead. Jerry