Jerry Samet
10-14-2023, 10:53 AM
The market put in a weak session yesterday. The major averages opened higher but quickly turned around and sold off into the close. All the major averages finished near their intraday trading lows. The Nasd averages were the weakest with the COMPQ and the NDX falling 1.23% and 1.24% respectively. The SPX declined .50%. Volume was lower across the board, showing that large institutional players were not heavy sellers. Leading stocks declined as well with the leaders index falling 1.80% on the day. The index closed low in its trading range on lower and below average volume. The market acted poorly yesterday. The major averages opened higher but quickly reversed and sold off into the close. The best thing about yesterday’s action is that volume was lower, so there was no distribution. The action in the last few days was worrisome. The COMPQ lost its 50dma which it just regained. Yesterday it fell further below this important moving average. Also the Summation Index has flattened out and looks like it is about to turn lower. This doesn’t mean the rally has failed, but the overall picture has darkened in the last couple of days. More caution is advisable. Jerry