Jerry Samet
10-18-2023, 06:24 PM
It was a pretty nasty session all around. The major averages opened lower and went down most of the day. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX declined 1.62% and 1.41% on the day. The SPX fell 1.34%. Volume was higher across the board, adding distribution on all the major averages. Leading stocks were lower as well with the leaders index falling 1.80% on the day. The index closed low in its trading range on lower and about average volume. There was little good that can be said about today’s action. Real damage was done today. The increase in interest rates to almost 17 year highs weighted on the market. The increase in tensions in the Middle East also didn’t help. The SPX and the COMPQ moved further below their 50dma’s. The NDX broke below this important moving average after trading above it for a week. This has been a crazy rally with contradictory signals all over the place. The usual seasonality we see this time of year has not gotten started yet. It still may, but this rally attempt looks like it will fail. It is looking more and more like the market isn’t ready for a real tradable rally yet. I will be away for a couple of days. The updates will resume on Monday. Jerry