Jerry Samet
10-13-2015, 11:46 PM
The market continued to consolidate the recent rally today with the major averages opened lower and after rallying back into positive territory sold off for the rest of the session and closed near the intraday lows. The COMPQ fell .87% while the SPX declined .68%. Volume was higher across the board but still below average. Yesterday’s light holiday trade allowed for an easy comparison, but it still counted as a distribution day on all the major averages. Leading stocks did worse than the overall market with the leaders index falling 1.75% on much heavier and well above average volume. The index tagged it’s 17dma but held above this important moving average. The index also closed low in it’s intraday range. After climbing for a couple of weeks the market may be taking a break. The COMPQ, which regained it’s 50dma yesterday lost it today. It has been a fairly contained rally so far and attractive stocks are not plentiful. Of those that exist fewer still are going on to produce worthwhile gains. It is normal to take a break after an advance, but this market should still be treated with some caution and you should probably not be to heavily invested. Jerry