Jerry Samet
10-14-2015, 11:42 PM
After a weak attempt to rally at the open the market sold off the rest of the session and all the major averages closed near their intraday lows. The COMPQ fell .29% while the SPX fell .47%. All the major averages, including those of the small and mid cap stocks took hits today, but the Semiconductors were the only real strength. The SOX was higher by 3.76%. Volume was higher across the board, but was still below average. This produced distribution on all the major averages for the second day in a row. Yesterday’s distribution could be explained by the low holiday volume on Monday, but today’s action represented real selling by large institutional players. Leading stocks were hit much harder than the overall market. The leaders index fell 3.08% on higher and above average volume. This is the second day in a row that the index took a significant hit on higher volume. The index also finished just below it’s 17dma. This is an important support level for quality growth stocks. The market had a decent rally and was consolidating it in a fairly orderly fashion. Today’s action was not orderly and showed real negative action. The Oct. Follow through was a fairly weak one and it is starting to look weaker. More days like today will put it in real trouble. Jerry