Jerry Samet
10-20-2016, 06:49 PM
The market sold off early, made a rebound and traded little changed the rest of the day. The major averages finished with a slight downside bias but were about unchanged. The COMPQ lost .09% while the SPX declined .14%. The Nasd averages closed high in their intraday trading ranges while the New York averages ended in about the middle of their trading ranges. Volume was higher on the Nasd and a bit lower on the New York, but the declines were too small to qualify as distribution. Leading stocks were generally lower on the day with the leaders index falling .54% on the session and closing in the upper half of it’s trading range. The index finished right on it’s 50dma and spent much of the day trading below this support level. The relative strength line of the index has been heading lower and is close to breaking below it’s 50dma. I would expect that the 50dma support level will be breached. The COMPQ tried to regain it’s 50dma today but couldn’t. The SPX continues to trade below this now resistance point. The market continues to be unable to get any traction and many leading stocks are breaking down. The picture is darkening. Jerry