Jerry Samet
04-13-2013, 11:25 AM
The market sold off early and spent the entire day in negative territory. A late rally erased much of the intraday losses and the major averages finished near the highs of the day. IBD said that volume was lower across the board so the New York averages escaped distribution even though their losses were greater than .20%. Esignal clearly showed higher volume on the NYSE and Marketsmith seems to agree so I guess it depends on weather you use consolidated volume or not. Leading stocks continued to struggle as the leaders index declined .31% on higher and above average volume. Quality stocks are struggling to reach new highs while the major averages set new highs on almost a daily basis, a divergence worth watching. The weekly Coppock has given a sell signal on all the major averages except the Dow Industrials. This indicator often gives sell signals that coincide with with momentum highs that often occur shortly before the major averages top out. It usually shows that leading stocks have peaked ahead of the overall market. We are in an unstable market that could go either way based on news and QE so cautiously long(although not fully invested) is probably the place to be. Jerry