Jerry Samet
08-27-2013, 11:30 PM
The market continued the sell off that began after Kerry spoke yesterday. The major averages opened down and continued lower the entire session. There wasn’t a hint of a bounce. The COMPQ took the worst of it, dropping 2.16% while the NYA declined 1.53%. Volume was higher across the board, and while it was not above average it showed some selling pressure. All the New York averages are now well below their 50dma’s and the Nasd averages are close to theirs. Leading stocks got hit hard as the leaders index fell 3.26% on slightly lower but still well above average volume. The index broke back below it’s 17dma and tagged the 50dma at it’s lows. The action of the last two days is looking like a high volume reversal among the leaders. The best stocks dropped hard, with FB down 4.11% and SSYS falling 5.27%. There was a Phoenix signal today which showed real weakness. This sell off was in large part due to what looks like almost certain military action against Syria, so it is possible there could be a quick recovery if the market concern proves short lived. Real damage was done today and we need a strong rally back with conviction or the market could be in for worse. Jerry