Jerry Samet
07-24-2012, 11:02 PM
The market was down hard all day and even though a late rally erased some of the losses all the major averages closed with about a one percent loss. Volume was higher across the board, producing a distribution day on all the major averages. The pattern of higher highs and higher lows on the NYA was broken today and is in danger on the other averages. This is a major negative. IBD went to market in correction, joining the MEM which remains at a zero count. Leading stocks generally got hit harder than the overall market as the leaders index fell 1.25% on lower and slightly below average volume. The index bounced off it's 50dma again. This is the third time it has hit this important moving average and will likely break below it on future attempts. After the close AAPL reported a miss along with other quality stocks missing their estimates. All are getting hit in the after market. Things are looking pretty bad now and it appears like the market wants to go lower. Jerry