Jerry Samet
09-24-2015, 10:15 PM
The market started off the session with significant losses and it appeared it would be another big down day. The major averages bottomed out about an hour and a half into trading and worked their way higher for the rest of the session. They couldn’t get into positive territory and closed with modest losses. The COMPQ lost .38% while the SPX fell .34%. Both closed high in their intraday ranges, so there was some support. Volume was higher across the board and above average on the New York. This produced distribution on all the major averages, making it five distribution days all around. This is a high number. Leading stocks did worse than the overall market. The leaders index also finished high in it’s intraday range, but lost 1.88% on the day. The index closed fractionally above it’s important 17dma. This is the third day in a row that the index has closed virtually on this moving average. If it keeps testing the 17dma it is likely to break below it, but we will have to see what happens in the next few days. A break of this support level will likely for shadow lower prices. The recovery from intraday lows is a good sign, but doesn’t really change the picture much. The charts of all the major averages look terrible and it appears that lower prices are ahead. Jerry