Jerry Samet
05-23-2013, 11:24 PM
The market sold off hard at the open and it looked like there would be a continuation of yesterday’s decline. The major averages bottomed quickly and spent the rest of the day recovering most of the early losses. The major averages ended off between .44% on the NYA and .11% on the COMPQ. Volume was down across the board so there was no distribution on the day. Leading stocks also recovered much of their early losses with the leaders index falling only .13% on lower but slightly above average volume. Many quality stocks have taken good sized hits in the last few days and there have been an uncomfortable number of breakout failures. The index closed just above it’s 17dma after trading well below this important moving average. The market must recover quickly from here and any further weakness will spell real trouble for the rally. Jerry