Jerry Samet
02-24-2025, 06:27 PM
It was a disappointing day. After Friday’s action you would hope for a bounce. It didn’t happen. The major averages opened with moderate gains but selling came in quickly. A modest rally attempt failed and the major averages finished near the bottom of their intraday trading ranges. The NASD averages again took the worst of it with the COMPQ and the NDX falling 1.21% each. The SPX lost .50%. Volume was lower across the board so there was no new distribution. Leading stocks were lower as well. The leaders index fell 2.24% on the day. The index closed in about the middle of its trading range on higher and above average volume. The index closed just above its 50dma. Today’s action did not improve the picture. After a big decline you want to see a nice bounce to give you some confidence that the worst was likely over. We didn’t get any bounce today. There was late weakness on more tariff talk, but the market was not doing well even before that. The SPX and the NDX joined the COMPQ below their respective 50dma’s today. This is weak action. Leading stocks continued to sell off as some of the best leaders of the rally continue to break down. We are at best in the trading range we have been in since late last year. This type of market is very difficult to trade as it produces a lot of false signals and small losses. At this point protecting capital is the smart move. Jerry