Friday, January 22, 2010
Stocks got smacked during this shortened holiday week as investors digested a slew of earnings and economic data. Volume was reported lighter than Thursday’s session on the Nasdaq and on the NYSE which helped the major averages avoid a distribution day. However, the fact that all the major averages are now negative for the year, negatively reversed on a weekly and monthly basis, and closed below their respective 50 DMA lines suggests the market is in a correction. Decliners trumped advancers by over a 4-to-1 ratio on the NYSE and by almost a 3-to-1 ratio on the Nasdaq exchange. There were only 4 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, sharply lower than the 15 issues that appeared on the prior session. New 52-week highs still solidly outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.