Jerry Samet
09-22-2012, 11:51 AM
The market got off to a strong start yesterday with solid gains in all the major averages. Those gains didn't hold and by the end of the day the major averages closed little changed and all finished at the lows of the day. Volume was much higher across the board, but much of that was a result of the rebalancing that took place yesterday. Leading stocks did better than the overall market as the leaders index rose .86% on much higher volume. Some of this volume increase was due to the rebalancing, but there was clearly strong volume in the leaders advance. The index also broke above it's recent consolidation into new high ground and it's RS line is improving. We are again seeing quality stocks lead the market higher, which is positive. The major averages spent last week consolidating the previous weeks gains and we have had very tight closes the whole week. This is generally a good sign, but we will have to see which way they break. Jerry