Jerry Samet
02-06-2012, 11:24 PM
The market sold off at the opening and it looked like we might get a bit of corrective action today. The major averages then spent the rest of the day rallying back to close near unchanged and at the highs of the day. Volume was lower across the board. This is the type of action you see in positive markets, rallies on higher volume and declines or consolidations on lower volume. The market also pretty much ignored news that Greece was resisting austerity measures demanded by the EU and the IMF to get the next installment of it's bail out package. Not long ago news like this would have caused a significant sell off. This shows how the tone of the market has changed in recent weeks. Leading stocks outperformed the overall market today with the leaders index rising slightly, by .15%, also on lower volume. The leaders index and it's RS line both made new highs for the move today. The encouraging action of both the market and leading stocks shows that the rally is still on solid ground. Jerry