Jerry Samet
11-17-2015, 11:06 PM
The market had a nasty reversal today. All the major averages had solid gains early and it looked like there would be a continuation of yesterday’s positive price action. The market topped out about half way through the session and traded lower the rest of the day. The major averages finished at their intraday lows and volume was higher across the board. The COMPQ closed slightly higher with a gain of .03% while the SPX fell by .13%. This produced a stalling distribution day on the COMPQ bringing it’s total to six. Leading stocks had a tough session as well with the leaders index falling 2.28% on higher and above average volume. Almost all of this decline was caused by a 30.73% drop in UVE on massive volume. A drop this large can distort the index and I will look for a replacement in the next couple of days. Without this stock the index would have been up slightly, as the IBD 50 was up .17% while the FFTY fell .57%. The market’s action after the declines of late last week does not inspire a lot of confidence. The major averages appear to be struggling and a good deal of caution is warrented. Jerry