Jerry Samet
02-20-2025, 06:28 PM
The market had a negative session overall today, but late buying saw the market close off its lows. The major averages opened weak, but found a bottom pretty quickly. Much of the early losses were recovered by the close, but there were still real losses. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX fell .47% and .48% respectively. The SPX declined .42%. Volume was mixed, higher on the New York and lower on the NASD. This produced a distribution day on the New York averages. Leading stocks took a hit today as one of the pillars holding up the market is showing some cracks. The leaders index fell 4.87% on the day as several members cracked. The index closed in the upper half of its trading range on much higher volume. The index held its 17dma. It was a disappointing session overall. Although the worst of the losses were erased by the close, it is not what you want to see. The major average have been trying to break convincingly out of their recent consolidations, and despite the SPX and NDX reaching new highs, it hasn’t really happened yet. Today’s action takes the major averages further from that goal. Another problem is the action of leading stocks in the last couple of days, but particularly today. Quality growth stocks were hit hard today. One of the best things the rally had going for it was the positive action in leading stocks. If this changes it would be negative for the rally. The market must rally back hard and quickly and break above the current consolidation. Today’s action darkened the picture. Jerry