Jerry Samet
10-30-2011, 11:45 AM
The market spent the day on Friday consolidating recent gains. The major averages spent most of the day bouncing around unchanged and closed with little change on the day. This is positive action as markets cannot go straight up and must consolidate gains. Volume was much lower on Friday than the day before which is not bad on a day when the market is consolidating gains. Leading stocks did better than the overall market with the leaders index rising .81%, also on lower volume. The leaders index is forming a triangle with a declining tops line and a rising bottoms line coming together. It almost broke above the declining tops line on Friday but couldn't hold the gains. A break above or below this formation would say a lot about the future direction of the market. Jerry