Jerry Samet
10-28-2013, 10:58 PM
The market struggled again today. The major averages were little changed today, with the SPY up .13% and the COMPQ down .08%. Volume was mixed, down on the Nasd and up slightly on the New York. Leading stocks continued weak trading as the leaders index fell 1.37% on higher and about average volume. This showed distribution among the leaders. The index, after tagging it’s important 17dma the last four days finally closed below it. Both the index and the RS line of the index now have a pattern of lower highs and lower lows. Leaders continue to break down and the four horsemen all have charts suggesting lower prices. The divergence between leading stocks and the major averages continues. Leaders have been weak for more than a week and the major averages, while near their highs, are struggling in the last couple of days. It is starting to look like this divergence will be resolved with the major averages joining the leaders in a decline. The rally looks like it is getting into real trouble. Jerry