Jerry Samet
06-03-2013, 11:28 PM
The market was weak early but after bottoming a couple of hours into the session it spent the rest of the day rallying and closed at the highs of the day. The major averages finished with gains ranging between .27% on the COMPQ and .59% on both the NYA and SPY. Volume was up on the day. Leading stocks did not share the major averages rebound with the leaders index falling .37% on higher and above average volume. The index recovered much of it’s early losses but still closed below both the 9dma and the 17dma. Quality stocks clearly underperformed the overall market, which is not a positive divergence. There was another Hindenburg Omen today. The last time there was a cluster of these signals was in 2007 in the final stages of the last cyclical bull. The rebound today was solid, but not as impressive as you would like to have seen after recent weakness. Caution is still the word of the day. Jerry