Jerry Samet
09-03-2024, 06:18 PM
September opened with a bang as the market sold off hard. Weaker than expected manufacturing data sent the major averages lower at the open and they sold off into the close. All the major averages finished near their intraday trading lows. The NASD averages led the way lower with the COMPQ and the NDX falling 3.26% and 3.15% respectively. The SPX declined 2.12%. Volume was higher across the board, producing a new distribution day on all the major averages. Leading stocks were lower as well with the leaders index falling 2.48% on the day. The index closed low in its trading range on lower but above average volume. The index closed right on its important 17dma. The market was hit hard today as weaker than expected manufacturing data caused a sell off. This time bad news was taken as bad news as attention seems to be shifting to the economy from interest rates. Major damage was done today as the NASD averages broke back below their 50dma’s on heavy volume. The SPX tagged this moving average today but held above it. The rally is under real stress right now and may well be over. A defensive posture is warranted. There are several economic reports this week culminating in the employment report on Friday. September is historically a bad month for the stock market. Jerry