Jerry Samet
06-22-2012, 12:06 AM
The market had an ugly day today. All the major averages were hit hard with averages declines of about 2.5%. Volume was higher across the board so there was institutional selling. The major averages all broke back below their 50dma's and their 21dma's. When a stock or index regains an important moving average like the 50 day and can't hold it that is a very negative sign. The leading stocks got hit hard today with recent breakouts failing and a great number having multiple percent down moves. Only one stock in the IBD 50 was up today. The new leaders index was hit hard with a 3.31% decline on higher and above average volume. The index held it's 9dma, but the big red candle looks bad. IBD went to market under pressure, and the rally attempt is now in real trouble. Jerry