Jerry Samet
05-22-2012, 11:22 PM
After the big rally(on lower volume) yesterday the market looked like it would continue the rally attempt early, but later in the day the major averages gave back all their gains and closed near the lows of the day. Volume was mixed, slightly higher on the NYSE and a bit lower on the Nasd. After the recent sell off you would expect something of a snap back rally, but what we have seen so far looks pretty weak. The major averages seem like they are being contained by their declining 10dma's and the NYA is starting to live below it's 200dma. Leading stocks did a bit better than the overall market with the leaders index rising .88% on higher volume. It also gave up early gains and finished near it's intraday lows and is being contained by it's declining 9dma. It would not be unusual for both the major averages and the leaders index to rally close to or even hit their 50dma's on a rally attempt. What they do at those levels will tell us a lot about where the market is going. Jerry