Jerry Samet
06-18-2016, 02:23 PM
The market had another weak session yesterday. The major averages were lower the whole day about the only good thing you can say is that the New York averages closed off their intraday lows. The COMPQ finished with a loss of .92% and near the bottom of it’s intraday trading range. The SPX lost .33% and closed in about the middle of it’s trading range. Volume was higher across the board, as you would expect on an expiration day, but it still counts as distribution. Leading stocks were hit harder than the overall market with the leaders index falling 1.22% on the day. It closed in the lower half of it’s trading range. Volume was much higher than Thursday and above average. This was largely due the expiration, but it counts as distribution on this index as well. The index is moving further below it’s short term 9dma and 17dma. These moving averages are now resistance and the fact that the index broke below them is a big red flag. The major averages made a run at old highs and were turned back. Unless the market can rally back and take out these old highs with some conviction there will likely be lower prices ahead. Jerry