Jerry Samet
10-29-2014, 11:03 PM
The market held it’s ground today after yesterday’s advance. The major averages were little changed until the Fed announcement and then sold off a bit. At it’s worst the COMPQ was down about one percent, but it didn’t hold. In the last hour the market rallied and erased much of the losses. The COMPQ finished with a loss of .33% while the SPY lost only .14%. Volume was higher across the board so there was distribution on the Nasd averages. The small decline in the New York averages let them avoid distribution. The SPY tagged it’s 50dma and held it while the COMPQ didn’t reach this moving average. All the major averages closed in the upper half of their intraday ranges, a sign of support. Leading stocks declined as well with the leaders index declining 1.42% on higher and above average volume. The index tagged it’s short term 9dma and bounced off it, closing near it’s high of the day. This is good action considering two components of the index, FB and AFSI, took very large hits on heavy volume. Overall today’s decline doesn’t seem to have done a lot of damage. Both the major averages and the leaders index recovered early losses and closed strong. We are in a very late cycle rally so we should not expect to much from this rally, but short term the uptrend seems intact. Jerry