Jerry Samet
07-20-2024, 10:52 AM
The market had another negative session yesterday as the recent weakness continued. 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 lost .81% and .93% respectively. The SPX declined .71%. Volume was lower across the board so there was no new distribution yesterday. Leading stocks were lower as well with the leaders index falling .84% on the day. The index closed low in its trading range on lower and well below average volume. The recent negative action continued yesterday as more damage was done to the rally. The major averages fell further below important moving averages and the NASD averages are approaching their 50dma’s. The action in leading stocks is also worrisome as the leaders index is now below its important 50dma. Breaking this important support level is often the death nell of a leading stock. The index breaking this support level is a big red flag. Earnings season kicks in full speed next week with important companies like TSLA and GOOGL reporting. There are also important GDP and inflation reports. Good earnings could right the market, but right now the picture is getting darker as the stress on the rally builds. If there is no improvement next week the rally will be in real trouble. Jerry