Jerry Samet
06-14-2016, 06:54 PM
The markets were lower today, but they recovered a lot of earlier losses and finished the session modestly lower. The COMPQ had a decline of .10% while the SPX lost .18%. This was well off their intraday lows and they closed high in their intraday trading ranges. The fact that they regained most of their losses is a sign of support as buying came in at lower prices. This is something that has not happened in the last couple of days. Volume was higher across the board, something you do not want to see during a sell off. There was no distribution today as the declines in the major averages were to small to qualify. Leading stocks were mostly lower today as well with the leaders index falling .20% on the day. It also closed in the upper half of it’s trading and above it’s opening price. Volume was much lower on the day and well below average. The index remains below it’s important 17dma and the 9dma is close to the longer term moving average. It must regain the 17dma in order to improve the picture. The fact that the market could regain early losses and close near it’s intraday highs is a sign of support. But the SPX joined other major averages below it’s 50dma today. The major averages have been turned back at important resistance levels. The more time they spend below these levels the greater the chance that they will not overcome them. Jerry