Jerry Samet
05-01-2013, 11:15 PM
The market had a pretty nasty reversal today. The major averages were higher early but then turned around and sold off for the rest of the session. They closed at the lows of the day, giving back all of yesterday’s gains. The only saving grace was that volume was lower across the board so there were no distribution days added to the count. Leading stocks got hit much worse than the overall market as the leaders index fell 1.90% on lower but still above average volume. The index closed back below it’s 9dma and 17dma and tagged the 50dma before closing above this critical moving average. Only seven stocks in the IBD 50 were up on the day. This kind of action right after a run to new highs is not what you want to see and while it didn’t kill the rally, it would be a good idea to stay very close to the exits. Jerry