Jerry Samet
02-04-2014, 11:23 PM
After a big sell off like we had yesterday you would expect to see a strong rebound if the market was were going to right itself. We didn’t get that today. After a higher opening the major averages sold off before rallying into the close. They only regained a small part of the previous day’s losses but managed to close near their intraday highs. The problem again was volume. The pattern of lower volume rebounds after high volume declines continued, showing that there was little interest in stocks by large players. Leading stocks had an up day as well with the leaders index rising 2.27% on lower and about average volume. The index closed fractionally above it’s 50dma but the chart seems to ruled by the declining 17dma. The market is acting poorly right now as it can’t seem the rally back from this decline as it has from previous ones in the last year. It is looking more and more like this will turn into something more serious than we have seen in a long time. It is still fairly early in the correction, but having some short positions or inverse ETF’s might not be a bad idea. Jerry