Jerry Samet
07-12-2012, 10:54 PM
The market sold off early and was down all day. Like yesterday, a late rally erased much of the decline and the major averages closed in the upper half of their trading ranges. All the major averages are now back below their 50dma's. Volume was higher across the board so there was distribution on all the major averages. The inability to stay above this important support level is a big negative. Leading stocks performed about in line with the overall market as the leaders index declined .47% on slightly lower volume. This is the second day the index traded below it's 17dma and it tagged it's 50dma for the first time since early June. Every time the market seems like it is going to really break it seems that there is a bid under it. Weather this is real or the PPT we don't know, but the action of the major averages and leading stocks is not encouraging. Jerry