Jerry Samet
10-19-2016, 06:39 PM
It was a fairly quiet session today. The major averages traded in a tight range and finished the day little changed. The COMPQ finished with a gain of .05% while the SPX rallied .22%. Both closed high in their intraday trading ranges, a positive sign. Volume was generally higher. Leading stocks were mixed as well with the leaders index declining .03%. The index closed slightly above the midpoint of it’s intraday range. It remains just below it’s important 17dma and again tagged it’s 50dma support level. This is critical support and if the index keeps tagging it the chances of the current trading range being resolved to the downside will increase. The COMPQ closed right on it’s 50dma while the SPX continues to trade well below it. The charts of the major averages are starting to look pretty ragged and some stocks that have been leaders for the entire rally are breaking down. The risk level seems to be pretty high right now. Jerry