Jerry Samet
09-16-2023, 11:00 AM
The market got hit again yesterday. The major averages opened lower and continued declining the rest of the session. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell 1.58% and 1.75% respectively. The SPX declined 1.22%. Volume was higher across the board. This was due to Friday being an expiration day, but it was still a down day on higher volume, so it counts as distribution on all the major averages. Leading stocks got hit as well with the leaders index falling 2.23% on the day. The index closed low in its trading range on much higher and above average volume. The index also broke below its 17dma support. The market reversed the previous day’s gains again. All the major averages fell back below their respective 50dma’s in continued back and forth action. Volume was higher due to Friday being an expiration day, but it still counts as distribution and the overall count is getting high. The leaders index fell below its 17dma which is very important support for leading growth stocks. The rally is looking more and more shaky and I still believe that it will officially fail soon. I also believe that a retreat here will set up a good buy signal that will produce a successful rally. Jerry