Jerry Samet
07-22-2013, 11:05 PM
The market had a pretty flat day today with the major averages up slightly. The COMPQ lead the way with a .36% gain and the SPX was up only .20%. That was enough for the SPY to set a new high. Volume was lower across the board so there was little conviction in the move. Leading stocks underperformed the overall market as the leaders index rose only .19%. Volume was higher than Friday but still well below average. The rally is intact, but appears to be struggling. Both the major averages and the leaders index are holding their 10dma’s and 9dma respectively. After the recent advance they are certainly due a rest and the only real dark cloud on the horizon is the distribution count on the COMPQ. It has had three distribution in the last week and is close to a distribution cluster that would reduce the count on the MEM. Few quality stocks are producing meaningful gains, but several are setting up new bases. If the rally continues some of them may produce attractive breakouts. Jerry