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Jerry Samet
12-05-2011, 10:10 PM
The market gapped open today and was strong early just like it was on Friday. It started correcting and was headed lower until the last half hour when it staged a bit of a rally and recovered some lost ground. Volume was up slightly on both the NYSE and Nasd but was still well below average. It looked like we might get an FTD but the major averages closed just below the 1.25% threshold level needed. Leading stocks generally did pretty well but the leaders index underperformed the overall market with the leaders index rising .21% on very low volume. Much of this was due to HITK which declined 8.8% on heavy volume. The index is starting to develop a wedging look. S&P put the entire Euro Zone in CreditWatch with negative implications so this is a potential problem if the triple A countries get downgraded. It is a big news week in Europe with the meeting today and the ECB meeting and the EU summit later this week. News from these events could send the market rallying or selling off hard. The major averages are still dancing around their 200dma's, which will continue to provide major resistance. Jerry