Jerry Samet
12-14-2015, 11:53 PM
After a big decline like we say on Friday you want to look to the quality of the bounce to give a clue about weather the worst is over or not. Despite the positive closes of the major averages the action overall was not encouraging. After opening weak the market bottomed out after a couple of hours of trading and then worked it’s way higher the rest of the session. Late strength allowed the major averages to close at their intraday highs. The SPX gained .48% on the day while the COMPQ was up by .38%. Volume was higher across the board, a good sign. These were about the only good factors in the day’s action. The major averages were lower most of the day, and market internals were weak. Despite the gains in the major averages there were almost three times as many stocks lower than higher on the New York. The Nasd also saw more stocks lower and there was more down volume than up volume on both exchanges. Leading stocks were mixed as well with the leaders index declining .52% on the day on lower and about average volume. The index closed in the lower half of it’s intraday range, about all you can say that is good about the day’s action. There were new lows on both a price and a relative strength basis. If you look at the stocks up and down on volume in the Marketsmith 250 it shows 73 stocks up and 583 down, not what you usually see on a day when the major averages rally. It will likely be a quiet session tomorrow as we await the Fed announcement on Wednesday, but things are not looking good right now. Jerry