Jerry Samet
10-14-2012, 11:30 AM
The market continued it's recent pattern of opening with solid gains and then giving them up. We opened strong and then spent the rest of the day working our way lower and ended up finishing at the lows of the day. Volume was lower across the board and that combined with the small losses meant that there was no distribution. Leading stocks performed a bit better than the overall market with the leaders index flat with a .05% gain. Volume was slightly lower than Thursday. The index closed off it's lows, but for the first time traded intraday below the 50dma. This is a critical level and should hold . The index is still trading between the 50dma on the lower end and the 9 and 17dma on the upper end. If it breaks below the 50dma it will be a very negative sign. The COMPQ is beginning to live below it's 50dma and the SPX closed right at this important moving average for the first time. Further weakness will only confirm that at least a short term top is in place. Jerry