Jerry Samet
06-29-2013, 12:09 PM
The market was weak yesterday. The major averages were lower early then rallied to spend much of the day bouncing around unchanged. A late sell off brought the market down for the session and it closed in the lower half of it’s trading range. The COMPQ was up slightly on the day, rising only a fraction, while the SPY dropped .40% and the NYA declined slightly more. Volume was higher across the board, although much of this was due to the Russell rebalancing. Leading stocks performed a bit worse than the overall market with the leaders index falling .69% on higher and well above average volume, also largely due to the rebalancing. After the recent sell off the index climbed back to it’s 50dma on weak volume and so far has been turned back. The major averages have the same look to them. The COMPQ is sitting on it’s 50dma, but the New York averages have also been unable to retake this important moving average. The higher volume also produced distribution on the New York averages. The market is still acting weak, with the rally days generally on lower volume and declines on higher trade. There are some quality stocks that are holding up alright, but few are producing buyable breakouts. The market is still reacting to every word spoken by Fed officials which produces a lot of whip saws. Caution is advisable at this point. Jerry