Jerry Samet
10-01-2012, 11:22 PM
The market opened strong today on better than expected economic news, but could not hold most of the gains. The New York averages still closed up but in the lower half of their trading ranges and the COMPQ actually closed down on the day. Volume was mixed the the weak close qualified as a stalling distribution day. This continues the weak recent pattern of strong openings and weak closes. Leading stocks did not light any fires either as the leaders index finished up slightly with a .08% gain, but closed below where it opened. The index is still struggling with it's 9 and 17dma's. We have not had a really bad break yet but both the major averages and leading stocks are struggling and distribution is building. Caution is warranted. Jerry