Jerry Samet
10-11-2012, 11:04 PM
After a sell off one of the first things you look at is the quality of the bounce. We got off to a good start today but the major averages in a reversal lost all of those gains, producing a mixed close at the lows of the day's trading range. Market internals held early gains better than the major averages and closed stronger than the major averages. Volume was mixed,slightly higher on the New York averages and down on the Nasd. The small losses mean that there was no distribution today. Leading stocks were about flat on the day also with the leaders index up .12% on the day. Volume was higher but still below average. The index tagged is 50dma again and is now trading between that important moving average on the bottom and the 9 and 17dma on the top. The direction that the index breaks in will be telling. It would be hard to call today's action as anything but disappointing and the COMPQ is starting to live below it's 50dma. Unless we can rally with conviction soon it would seem that lower prices are ahead. Jerry