Jerry Samet
01-07-2014, 12:39 AM
The market opened with some gains but was unable to hold on to them. The major averages sold off the rest of the day and a late rally attempt fizzled and all of them closed in the lower half of their trading ranges. The COMPQ lead the way down with a loss of .44% while the SPY was off .25%. Volume was higher across the board and above average on the Nasd. This produced an additional distribution day on all the major averages. Leading stocks got hit also with the leaders index dropping .47% on higher and about average volume. The index broke below it’s 9dma, which had been holding for the last four sessions. The major averages broke below their 10dma’s which had held for the last couple of days. There were a couple of breakouts today and also a few pocket pivots, but overall it was a poor day. The market does not seem to be getting the same kind of support it did at the end of last year as 2013 is in the books and the fund managers have their bonuses protected. The A’s minis E’s turned down today, which is a bad sign at least short term. The action since the new year started has been sloppy and the negatives are building. The leaders index must hold it’s important 17dma, which it tagged today, and the major averages should hold their 21dma’s. Further weakness from here would bring the rally into question and unless we start to go up quickly further purchases are probably not a good idea. Jerry