Jerry Samet
07-31-2014, 10:53 PM
The market really got pasted today. It gapped lower at the open and it was down hill all day. The major averages fell hard with the Nasd averages leading the way. The COMPQ and the NDX were lower by 2.09% and 2.10% respectively. The SPY was close behind with a decline of 2.0%. Volume was considerably higher across the board, which produced distribution days on all the major averages. The New York averages all broke below their important 50dma’s, which shows real weakness. The Nasd averages are still above this important moving average, but not by very much. Leading stocks were hit much harder than the overall market with the leaders index falling 3.84% on the heaviest volume in weeks. The index broke below both it’s 17dma and 50 dma on the session. The fact that it is below the 50dma indicates a broken index. High volume shows that institutional players were big sellers of both quality growth and the major averages. Today’s action looks like the end of the current rally. IBD stayed at market under pressure, but it sure looks worse than that to me. Jerry