Jerry Samet
02-07-2015, 11:33 AM
The market opened yesterday with a little strength after Thursday’s gains. That didn’t last long as the major averages started selling off after a little over an hour. They spent the rest of the day declining. The COMPQ led the way down with a loss of .43% while the SPX declined .34%. They all closed near the bottom of their intraday ranges, a sign of weakness. Volume was mixed. It was clearly higher on the New York, which produced distribution on the New York averages, and was very close on the Nasd. IDB had it slightly lower so it said no distribution there while esignal had it slightly higher. When it is that close different data feeds can have different results. Either way there is a lot of distribution in the current market. Leading stocks had a poor session yesterday with the leaders index declining 1.54% and closing in the lower half of it’s intraday trading range. It is now sitting on it’s important 17dma after breaking below it’s 9dma. The relative strength line of the index peaked eight trading days ago and has been in a steady decline ever since. Both the major averages and the leaders index remain stuck in the trading ranges they have been in since November. Few if any quality growth stocks are working so making progress in a trading account is almost impossible. Until this changes cash is the best place to be. Jerry