Jerry Samet
03-04-2013, 10:24 PM
The market started off weaker today on a sell off in China, but the major averages reversed themselves and rallied later in the session and finished near their highs of the day. The major averages rose between .30% on the NYA and .46% on the SPX. They have recovered most of the losses that caused IBD to go to market in correction. Volume though was lower across the board. Leading stocks rallied along with the overall market and the leaders index rose .59% on lower but still above average volume. The index closed back above it’s 50dma, but closed well off it’s highs and about in the middle of it’s trading range. The index of five recent breakouts I have discussed recently continues to advance with the index rising 2.13% on higher and above average volume. Recent leaders are doing well. A week ago it looked like the market would clearly roll over but recent action, possibly induced by Fed money printing have brought them back near their old highs. There are clouds over the rally, particularly the fact that all recent up days have been on lower volume while the declines have been on higher volume. The weekly Coppock is curling and any real weakness from here will bring on a sell signal. It is hard to figure out where we are going from here and only time will tell which direction the market will take. Jerry