Jerry Samet
08-12-2015, 11:31 PM
Just when you think the market will start to trade in any directional move it seems to through another curve. China devalued it’s currency again and the major averages had a sizable loss going early. There were large losses in the European markets, but about when they closed the major averages here bottomed out and stages a reversal that brought the COMPQ and the SPX into positive territory, with modest gains of .15% and .10% respectively. They closed at the top of their intraday ranges and volume was higher across the board. Leading stocks had a wild ride as well with early losses that took the index almost to it’s 50dma for the first time since mid May. The index rebounded to close in the upper half of it’s intraday range. At it’s high the leaders index tagged it’s 17dma but could not get above it. The index closed with a loss of 1.05% on the session, much weaker than the overall market. The relative strength line of the index also made a lower low today. Volume on the leading stocks was higher today, as it was for the market. With a reversal like today you could see the market bounce higher, but the charts of the major averages still look a bit sickly. The SPX has now tested it’s 200dma five times in the last couple of months. If this continues it will likely break below this support level relatively soon. Even if there is a bounce after today’s action I would be surprised if it amounted to much. Jerry