Jerry Samet
10-09-2013, 07:35 PM
The market was pretty weak all day today. After a sell off, the quality of the bounce is important to watch to see if the worst is likely over. The major averages were lower most of the session and although the New York averages closed with small gains, the COMPQ was still down .46% at the close. Volume was higher across the board so there was distribution on the Nasd averages. The COMPQ joined the rest of the major averages in trading below it’s 50dma. Leading stocks had an overall down session as well with the leaders index falling .42% on higher and well above average volume. The index closed in the upper half of it’s trading range, but it continues to trade below it’s 17dma and came close to it’s 50dma today. The 9dma is also close to breaking below the 17dma. Today’s action was not particularly encouraging and even though we could get a pop on news of a deal in Washington, it appears that further weakness is ahead. Jerry