Jerry Samet
05-27-2013, 01:35 PM
The market opened weak again on Friday and after bottoming about an hour into the trading day started recovering. The major averages finished about unchanged on the day and on the intraday highs of the session. Volume was lower across the board and well below average. This would be expected on the Friday before a three day holiday weekend. Leading stocks followed a similar pattern to the major averages. The leaders index finished down .16% on the day on extremely light volume. The index remained below it’s 17dma for the second day. This is a critical moving average for leading stocks and if the leaders index and if the index can’t get back above it pretty quickly it will be a very negative sign for the rally. The charts of the major averages are still dominated by the reversal day last Wednesday. While the last two trading days have seen recoveries from early losses, the market must break above recent highs for the rally to regain solid footing. I hope everyone has a good Memorial Day. Jerry