Jerry Samet
11-26-2011, 11:33 AM
The market opened strong in the holiday shortened session yesterday on news that "leaders" were meeting in Europe. The strength didn't last long as the major averages sold off into the close and finished at the lows of the day and fresh lows for the recent decline. Volume was very light as you would expect in a half session after Thanksgiving. Leading stocks did worst than the overall market with the leaders index declining 1.15% on higher volume than the day before and touched the 200dma for the first time. This shows that there was distribution on this index. The next support level for both the major averages and the leaders index is low of the reversal day on 10-4. If and likely when this level is taken out we should see more downside. Jerry