Jerry Samet
02-15-2012, 11:24 PM
The market started off higher today, especially on the Nasd averages and then reversed lower. Today's decline was much less orderly than last Friday's. It is the first day in weeks that causes real concern. The major averages were off a bit over one half of one percent on the day and volume was higher across the board. This produced a third distribution day for all the major averages. They also finished weak and near the lows of the day for the first time in a while. The New York averages closed below their 10dma's. AAPL, the leading stock of recent years, had a pretty ugly reversal after making new highs early. It sold off on huge volume and closed at the lows of the day in what looks like at least a short term top. Leading stocks sold off a bit more than the overall market falling 1.20% on very high volume. The index managed to hold it's 9dma after trading below it for the first time in two weeks. One day's action does not make a trend, but today's reversal should at least put us on alert. Jerry