Jerry Samet
08-21-2012, 11:04 PM
The market started off the day with a solid rally as all the major averages made new highs for the move and the SPX set a new 52 week high. We then had a reversal and all the major averages sold off and closed with losses and at the lows of the day. They seemed to be following the lead of AAPL which set a new all time high and then reversed to finish down 1.37% on very strong volume. Overall volume was higher on both exchanges today and that produced distribution days on all the major averages. Leading were down more than the overall market as the leaders index declined .95% on very light volume. The index tagged the 17dma but rallied off the lows to finish just above the 9dma. This reversal is the first real shot across the bow since this rally started and while it is not a reason to sell on it's own it is the first real sign of trouble. Jerry