Jerry Samet
04-14-2014, 10:52 PM
The market tried to stage a snap back rally after the weakness last week. After a strong open the major averages sold off for much of the rest of the session. After the COMPQ went negative on news out of the Ukraine, a late rally regained much of those losses. The SPY led the way today with a gain of .82% while the COMPQ was higher by .57%. Volume was considerably lower across the board and was also below average. This showed a lack of real buying interest from large players. Leading stocks lagged the overall market with the leaders index higher by only .17% and closing in the lower half of it’s trading range. It also finished below it’s opening price, accounting for the red candle and a real sign of weakness. The index also tagged it’s 50dma again and closed just above this important moving average. Today’s action was the first attempted rally day after the sell off and the results were less than impressive. The gains were moderate and volume was light. This continued the recent pattern of high volume declines followed by low volume rebounds. This type of action usually points to lower prices ahead. Jerry