Jerry Samet
07-17-2024, 06:16 PM
The market got hit hard today, particularly the NASD averages. The major averages opened lower and worked their way down the rest of the day. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell 2.77% and 2.94% respectively. The SPX declined 1.39%. Volume was higher across the board. This produced a distribution day on all the major averages. Leading stocks were hit very hard today as well. The leaders index fell 5.08% and closed low in its trading range. Volume was higher and above average. The index also broke below its 50dma on higher volume, a negative development. The market was hit hard today. Before the open a report came out about tougher restrictions on chip sales to China. All the semiconductor stocks sold off hard and took the rest of the tech sector and the NASD with them. Small and mid-cap stocks sold off as well but held up better than the larger cap stocks. The real weakness in leading stocks is also a problem. One day doesn’t change a trend, but real damage was done today. There will be some important semiconductor earnings tomorrow and that could help, but today’s action raises the threat level. Jerry