Jerry Samet
06-30-2012, 12:30 PM
The market had a strong rally yesterday on news of yet another deal in Europe. The major averages were up between 2.5% and 3% for the day. Volume was up across the board, mainly due to options expiration. The increase in price and volume produced an FTD on all the major averages. Whether this one will be any more successful than the last we will have to wait and see. This was the 19th summit the European leaders have had since the crisis began and I didn't see anything in this deal that would have any more lasting effect than all the others, but like Pavlov's dog, investors again rushed in to buy. Leading stocks did well as the leaders index rose 3.6% on above average volume but below the very high volume of Thursday. This FTD was confirmed by the %E's and the weekly Coppock has flattened out and with any strength next week it will turn up and confirm also. The Eureka did not signal. That means that this FTD will likely be confirmed by two of the big three indicators in the FTD confirmation model. That puts it on a firmer footing than the last FTD that was confirmed only by one, but next week's action should tell us a lot about whether this one will succeed or not. Jerry