Jerry Samet
10-23-2012, 11:29 PM
The market's correction continued to deepen today as the major averages sold off again on disappointing earnings news. They sold off between .88% on the COMPQ and 1.61% on the NYA. Volume was higher across the board and above average, producing distribution on all the major averages. The COMPQ tagged it's 200dma today before closing above this level and the New York averages closed below their 50dma's for the first time in this correction. They all closed at new lows for the move and are now at zero rally counts. Leading stocks did a bit better than the overall market with the leaders index falling 1.07% on higher and above average volume. The index's 17dma is about to break below it's 50dma, a very negative sign. We are clearly in a real correction and the question now is how far will it go. Jerry