Jerry Samet
12-09-2024, 07:18 PM
The market had a strong week last week with the major averages and the leaders index making new highs. Today saw selling as the market may be a little extended in the short term. The major averages opened a little higher but spent most of the day selling off. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell .62% and .84% respectively. The SPX lost.61%. Volume was higher across the board, producing a new distribution day on all the major averages. Leading stocks were hit hard as growth stocks faced heavy selling. The leaders index had its worst day since I made it. The index fell 5.83% on the day and closed low in its trading range. Volume was higher and above average. ETFs of leading growth stocks showed similar losses. The market was strong last week, but cracks started to appear. Last week the Summation Index turned down and the As minus Es went flat. There are other sighs of a short term extension, like the level above important moving averages and very high bullish sentiment. Leading stocks were hit hard today, but the declines in the major averages were moderate. It was mostly a growth stock sell off. While there was real damage done today, the overall intermediate term trend does not seem to be in trouble, yet. At this point I think we are looking at a short term pullback or consolidation as excesses work themselves off. That could change, but right now the damage today is limited. Jerry