Jerry Samet
12-01-2011, 12:58 AM
Before the market opened today central banks around the world announced plans to inject large amounts of liquidity into the world financial system to help European banks and governments with their liquidity squeeze. Markets liked it and there was a strong rally with the major averages rallying over 4% on the day. These types of strong one day moves usually occur during bear markets. The close was strong and all the averages finished at the highs of the day on very heavy volume. Leading stocks rallied also but not as much as the overall market. The leaders index was up 3.77%on higher and about average volume. Even with this move there are not a large number of new breakouts out there. This was the third day of a rally attempt and tomorrow will be the first day we can have a true FTD. The major averages are also near their 200dma's and the spot where the last rally was turned back. For this rally attempt to continue the major averages must get above this level with conviction and we need an FTD. Jerry