Jerry Samet
11-09-2023, 06:27 PM
The market put in its first real negative session since the rally started. The major averages opened little changed but held up well until a poor Treasury action caused interest rates to go higher. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell .94% and .82% respectively. The SPX was off by .81%. Volume was higher across the board, producing the first distribution day of the new rally. Leading stocks were lower as well but did better than the overall market. The index fell .16% on the day and closed in the lower half of its trading range. Volume was lower and slightly below average. The market had a sell off today on news. The major averages were holding up well until a poorly received Treasury auction spooked the market and sent interest rates higher. Powell making hawkish comments in a speech didn’t help either. This is the first real negative session since the rally started and so it isn’t that big a deal by itself. The leaders index is holding up well and is consolidating in a constructive manor after a good sized advance. The real test for the major averages will be their respective 50dma’s. A break of this now support level would be very negative. Right now the rally remains on solid ground, but it would be nice to see it recover quickly and move higher. Jerry