Jerry Samet
01-02-2024, 06:30 PM
The year got off to a rough start today with declines across the board. The major averages opened lower and after a feeble rally attempt sold off to lows. Late buying saw the major averages finish well off their lows. The New York averages closed in the upper half of their intraday trading ranges while Nasd averages ended in low in their trading ranges. The Nasd averages were the weakest with the COMPQ and NDX falling 1.63% and 1.68% respectively. The SPX declined .57%. Leading stocks sold off as well with the leaders index falling .78% on the day. The index closed high in its trading range on higher but below average volume. It was a pretty nasty way to start the year. The worst of it was in the Nasd averages and the tech stocks. Some late buying helped but it was still a negative session. Volume was a lot higher, but it is compared to volume on the last day of the year before the New Year’s holiday. Despite this it still counts as distribution. There were some positives today as both the major averages and the leaders index held important support. I said over the weekend that some short term indicators turned down last week and it looks like there will be some short term negative action. Today was also the first day to take gains and not pay the taxes until next April, not this April. Overall it was a negative session and I would expect to see some more in the short term, but I don’t believe we have seen the ultimate top of the current rally. Jerry