Jerry Samet
06-13-2011, 11:44 PM
The market tried to have a rally today with decent gains early, but couldn't hold it as there was a sell off and the major averages closed about flat on the day. Volume was lower across the board. The leaders underperformed again with the index dropping .55% on flat but slightly above average volume. Today would have to be considered another weak day as the major averages don't seem to be able to muster even a weak bounce after the recent decline. The Nasd averages tagged their 200dma's today and they held. The quality of the bounce after a sell off is important in determining the direction of the market. This market has not even been able to generate a weak bounce. All the major averages are developing head and shoulders patterns that you see at important tops. Overall it looks like lower prices are ahead. Jerry