Jerry Samet
10-26-2023, 07:19 PM
The selling continued today. The major averages opened lower and it was mostly downhill from there. All the major averages finished near their intraday trading lows. The Nasd averages again took the worst of it as the big cap techs sold off again. The COMPQ and the NDX declined 1.76% and 1.89% respectively. The SPX lost 1.18%. Volume was higher across the board, showing that large institutional players were selling stocks today. Leading stocks were hit as well with the leaders index falling 2.29% on the day. The index closed low in its trading range on higher and above average volume. The correction worsened today as the major averages and leading stocks both suffered significant declines. The COMPQ broke below its 200dma on higher volume, a sign of real weakness. The leaders index broke below its 50dma on much higher volume. When a leading stock breaks its 50dma on higher volume is it a sign that the stock is broken. When a whole index of leading stocks does this it is very negative. The rally all year has been led by a small number of big cap tech stocks. With generally poorly received earnings reports these stocks are breaking down. This leaves little support for the market. We are seeing some gains in the futures right now as AMZN reported some good numbers, but we will have to see if they hold overnight. We are seeing unusual weakness right now and the bottom is clearly not in. Jerry