Jerry Samet
08-28-2024, 06:21 PM
The market put in a negative session today. The major averages opened little changed and were mostly lower all day. The NASD averages took the worst of it after SMCI’s news. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX lost1.12% and 1.18% respectively. The SPX declined .60%. Volume was higher across the board, so there was distribution on all the major averages. Leading stocks were lower as well, but held up better than the overall market. The leaders index fell .53% on the day and closed high in its trading range. Volume was higher and above average. The market sold off as it awaited NVDA’s earnings. SMCI caused a decline, particularly in NASD averages, after announcing a delay in some filings. The action today was very negative as the NASD averages clearly broke below their respective 50dma’s on higher volume. After the close NVDA came out with their earnings report and the market is not reacting well as of this writing. This will put more pressure on the market and particularly the NASD averages. They recovered after their big sell off and regained their respective 50dma’s. They have now lost this important moving average and it looks like it will get worse tomorrow. The rally is in some real trouble right now. It should open weak tomorrow. If it closes weak it will be very negative. Jerry