Jerry Samet
11-16-2024, 11:49 AM
The market took a sizable hit yesterday. The major averages opened lower and sold off pretty much the whole session. The NASD averages took the worst of it with the COMPQ and the NDX falling 2.24% and 2.40% respectively. The SPX declined 1.32%. Volume was mixed, higher on the New York and lower on the NASD. This produced a new distribution day on the New York averages. Leading stocks were lower as well, but less than the overall market. The leaders index fell .75% on the day. The index closed in about the middle of its trading range on higher and above average volume. The index closed below its 9dma. The market continued selling off yesterday after Powell’s comments on interest rates on Thursday. This has taken a lot of the steam out of the post-election up move. Most of that move is now gone. The fact that volume was lower on the NASD yesterday is good, but real damage was done. Powell’s remarks really hurt. Some support was taken out yesterday, like the 21dema on the COMPQ, but I don’t think enough damage was done to end the intermediate term rally we are in right now. That could change quickly if the selling continues. The market must move back up pretty quickly or the picture could change. NVDA reports on Wednesday and that is likely the only really potentially market moving news next week. We need to see the market recover the losses of the last two days quickly or a more defensive posture will be warranted. Jerry