Jerry Samet
01-02-2014, 11:35 PM
The market sold off this first trading day of the year. It was the worst opening day since 2008, and that didn’t work out well. The major averages were down at the open and worked their way lower all day. The NYA lead the way with a loss of 1.12% while the COMPQ was off .80%. Volume was higher across the board so there was distribution on all the major averages, but volume levels were well below average.The COMPQ had a distribution day fall off so it’s count remained at six while the SPY increased to seven. Leading stocks had a tough day also with the leaders index off 1.34% on higher but still below average volume. The index continues to consolidate and even with today’s loss it held it’s 9dma. It is acting in a pretty constructive manor as it allows it’s important moving averages to catch up with it. Both the COMPQ and the SPY pulled back today to their 10dma’s and held them. The COMPQ could easily pull back to it’s 21dma which is at about the same level as the top of the three week consolidation it just broke out of. Overall it was not a pretty day but no real damage was done and the up trend remains intact. Jerry