Jerry Samet
05-14-2012, 10:59 PM
The market got hit again today with all the major averages dropping in excess of 1% and after a mid day rally attempt faded closed at the lows of the day. Volume was mixed, lower on the Nasd and slightly higher on the NYSE. This produced distribution on the New York averages. All the major averages undercut their recent lows so the rally count goes back to zero. The COMPQ held the 2900 level, but the 50dma's on all the major averages have turned down. Leading stocks got hit as well as the leaders index dropped 2.01% on slightly higher but well below average volume. More and more stocks in the index are broken and the index closed well below it's 50dma for the first time since the rally started. The COMPQ is now just shy of an 8% decline and the other major averages are not far behind. It is looking like an intermediate(or worse) correction is under way. Jerry