Jerry Samet
10-29-2013, 11:20 PM
The market had a solid up day today with the New York averages leading the way. The INDU was up the most with a .72% gain while the COMPQ brought up the rear, rising .31%. A late rally brought the Nasd averages in positive territory for the day and allowed all the major averages to close at their highs of the session. They also all made new highs for the move. Volume was higher across the board so it was an accumulation day. Leading stocks were actually pretty weak for most of the day until that late rally brought them into positive territory. The leaders index rose 2.32% on much higher and above average volume . The index closed near it’s intraday high and is now back above it’s 17dma. The index must now get above the declining tops line that now controls the chart and then above Friday’s high to break the pattern of lower highs. Overall, despite today’s positive action, the leaders are struggling and the divergence continues. We will have to see which way things break, but at this point I still think the odds favor the downside. Jerry