Jerry Samet
08-07-2024, 06:16 PM
The market staged an ugly reversal today. The major averages opened with solid gains and rallied for a bit. Selling came in and all the major averages sold off into the close, finishing near the bottom of their intraday trading ranges. The COMPQ and the NDX fell 1.06% and 1.16% respectively. The SPX declined .77%. Volume was lower across the board, although it was very close on the NASD. Leading stocks sold off as well with the leaders index falling 1.40% on the day. The index closed low in its trading range on lower but above average volume. The market had a bad session today. The major averages opened higher and it looked early like the gains of yesterday would be built on. It didn’t last long as selling came in and all the gains were lost and then some. This type of reversal is a very bad sign. Strong opens and weak closes point to lower prices ahead. The NASD averages are not that far from their respective 200dma’s. Breaking this moving average would be very negative. The market is not ready to rally yet. I suspect we won’t see a real strong rally until the fall. Jerry