Jerry Samet
10-15-2012, 06:56 PM
The market was up nicely today as for the first time we got something of a bounce after the recent sell off. For the first time the market finished strong as the major averages closed near their highs of the day. The SPX bounced off it's 50dma and the COMPQ remained below it's 50dma. The real issue of the day was volume. You would like to see strong volume come in on a bounce, but we didn't really see that today. The volume on the Nasd was up slightly and volume on the NYSE was about flat(according to esignal). That isn't really a lot of conviction. Leading stocks did better than the overall market with the leaders index up 1.26% on lower and below average volume. The index again traded below it's 50dma but closed above that important moving average. It remains in a trading range between the 50dma on the bottom and the 17dma on the top. Which one of these moving averages is broken first will tell a lot about how severe this correction will be. Jerry