Jerry Samet
09-24-2016, 12:23 PM
Sorry for having missed Thursday’s update. I was having, and am still having, computer problems. After two solid up sessions on Wednesday and Thursday after the Fed announcement it is not unusual to have a pullback. Thursday saw a continuation of Wednesday’s rally and the Nasd averages all moved into new high ground. The New York averages regained their 50dma’s. Both day’s had above average volume. Friday opened a bit lower and there was a steady decline for the rest of the session. The COMPQ declined .63% on the day while the SPX lost .57%. All of the major averages, and minor averages, finished at their lows of the day, so there was little buying support at the end of the day. Volume was lower across the board. This shows that big institutional players were not selling heavily yesterday and that there was less selling pressure on yesterday’s decline than there was buying pressure in Wednesday and Thursday’s advance. Leading stocks were lower yesterday as well with the leaders index falling .80% on the day. The index closed just slightly below the mid point of it’s intraday trading range, better than the major averages performed. It broke into new high ground on Thursday on both a price and a relative strength basis and yesterday’s decline saw it remain above it’s recent consolidation. Volume on the leaders index was very low on Friday and also lower than the two previous rally days. The Nasd averages broke into new high ground on Thursday and yesterday’s decline didn’t do any real damage. The New York averages broke above resistance at their 50dma’s on Thursday and fell back below them yesterday. They must regain this important moving average if they are to continue higher. Overall the damage from Friday’s decline was pretty limited after the advance of the previous two days. The rally appears to be intact and the market seems to want to go higher. Jerry