Jerry Samet
01-30-2012, 11:26 PM
The market opened weak today and reached it's intraday lows soon after the open. It then spent the rest of the day regaining those losses to finish down only slightly on the day. The major averages finished near their highs of the day. Volume declined across the board and was below average on both markets. The Nasd, NYA and SPX all tested their 10dma's and all of them held. Leading stocks performed better than the major averages with the leaders index rising .39% on higher but still slightly below average volume. The RS line of the leaders index rose and is near it's recent highs. The index broke below it's 9dma and has held above it's 17dma over the last two days. This is an important level for leading stocks and it would be a real negative if the index broke below this level with conviction. The fact that the market showed weakness early and was able to rally back and almost eliminate it's losses shows underlying strength in the market.