Jerry Samet
11-23-2011, 10:10 PM
The markets sold off hard around the world today with the major U.S. averages dropping about 2.5% on lighter pre holiday volume. All the major averages continue to sink lower below their 200dma's and 50dma's. News of a real slowdown in China and a failed auction in Germany seem to have caused the declines. If even Germany is having trouble selling it's bonds then Europe has indeed entered endgame. This is when there is no one but the central bank to buy sovereign debt and the game is almost over. Leading stocks sold off slightly less than the overall market with the leaders index declining 2.1% on higher volume. This shows there was distribution in leading stocks. The market has been unable to generate even an oversold bounce, which usually means lower prices ahead. I hope everyone has a happy Thanksgiving. Jerry