Jerry Samet
06-09-2013, 07:35 PM
The market had another solid up day on a price basis on Friday. The major averages rose about 1.3% on the session and finished strong on the highs of the day. The issue again was volume. It was lower across the board again. Leading stocks outperformed the overall market with the leaders index rising 1.79% and finishing a bit below the highs of the day. Volume on the index was lower on the day, but was a little above average. The index traded above it’s 17dma but couldn’t close above this important moving average. A close above this level with volume behind it would be a positive sign. We have had a decent snap back in prices after the recent sell off, but there has been no conviction in the form of volume. If this continue it will take on the look of a wedging rally with the high failure rate that goes with these patterns. Frankly, with all this volatility I don’t really know which way this thing is going to break. The beach is a good place to be until the market gives us more information on which way it is going. Jerry