Friday, May 21, 2010
Stock Market Commentary:
Stocks got clobbered this week sending all of the major averages below their respective 200-day moving average (DMA) lines as contagion and economic woes dominated the headlines. A series of options expired on Friday which caused a spike in volume compared to Thursday’s levels on both major exchanges. All week, volume expanded as the major averages declined which was a clear sign that institutional investors were aggressively dumping stocks. In addition, breadth was decisevly negative on both major exchanges. New 52-week lows steadily outnumbered new 52-week highs which is not an encouraging sign.