7-Week Rally Under Pressure

Friday, April 16, 2010
Market Commentary:

The major averages rallied during the first half of the week but gave back those gains on Friday’s ugly distribution day. Volume jumped on Friday compared to Thursday’s levels after the SEC charged investment giant Goldman Sachs (GS) with fraud when they sold CDO’s in 2007. Decliners trumped advancers by nearly a 4-to-1 ratio on the Nasdaq exchange and by nearly a 3-to-1 ratio on the NYSE. New 52-week highs easily trumped new lows on both exchanges. There were 37 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 89 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally. Regular readers know we have repeatedly noted in this commentary –“the recent expansion in leadership has been a welcome improvement.”

Strong Start To The Week But Rally Fizzles:

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