Jerry Samet
12-10-2024, 07:21 PM
The market continued its recent weakness today. The major averages opened a little higher, but couldn’t hold the gains. Selling came in and the major averages declined the rest of the day. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell .25% and .34% respectively. The SPX lost.30%. Volume was lower across the board, so there was no distribution on the day. Leading stocks were hit again as growth stocks and tech in particular were weak. The leaders index fell 2.52% and closed low in its trading range. Volume was lower but above average. The index also closed below its 17dma. The market continued to display weak action. It opened higher but sold off and closed weak. I said yesterday that I expected some consolidation or, hopefully, a minor sell off. It looks like that is playing out. So far the damage to the major averages had been pretty minor, although the SPX broke below its 10dma.More worrisome is the action in leading stocks. The last two days has seen real weakness in growth and tech stocks. The leaders index fell below its 17dma today. This is something that must be watched and further weakness could darken the overall picture. Right now it still looks like a short term pull back in an on going intermediate rally. The CPI report comes out tomorrow and the Fed meets next week. Jerry