Jerry Samet
01-25-2016, 11:14 PM
After Friday’s rally the question was would this attempted up move have any legs. From today’s action the answer would seem to be no. The market opened lower and after a feeble rally attempt about mid day the major averages sold off into the close to finish at their intraday lows. Most of Friday’s gains were lost as the COMPQ fell 1.58% while the SPX dropped 1.56%. The real damage was in the small and mid cap stocks with the RUT falling 2.28% and the MID declining 2.05%. The only real positive on the session was the fact that volume was lower across the board, but was higher than average on the New York and lower than average on the Nasd. This shows that large institutional players were not heavy sellers today. Leading stocks sold off as well, but not as much as the overall market. The leaders index declined 1.05% on lower and slightly above average volume. It closed low in it’s intraday trading range and right on it’s short term 9dma. We will have to see if the index can hold this support level. The market is still having trouble staging any kind of real rally after the declines in January. The fact that it can’t rally probably says that lower prices are ahead, but a move up that would allow some short positions to be put on would be nice. Jerry