Jerry Samet
11-08-2012, 12:54 AM
The market reacted to an election result that is almost certain to produce further gridlock by selling off hard. The major averages lost between 2% and 2.5% on higher and well above average volume. Important support levels were broken as the COMPQ broke decisively below it's 200dma and the New York averages are now well below their 50dma's. The COMPQ is now well below the 3000 level and the Dow broke below 13,000 and the SPX below the 1400 level. Leading stocks got hit also but the leaders index fell much less than the overall market. It declined .84% on higher and above average volume. The COMPQ is now 8% below it's high, putting it at the high end of a small correction and on the verge of intermediate correction levels. It looks like lower prices are ahead. Jerry