Stocks Tank As Correction Take Hold

Wednesday, May 5, 2010
Market Commentary:

The major averages ended lower one day after sliding into a correction as the US dollar rallied and the euro tumbled. Volume totals ended mixed; higher on the Nasdaq composite and lower on the NYSE compared to Tuesday’s lofty levels. It was not encouraging to see the NYSE, Nasdaq and S&P 500 index all close below their respective 50 DMA lines on above average volume. Decliners trumped advancers by nearly a 4-to-1 ratio on the NYSE and by a 3-to-1 ratio on the Nasdaq exchange. New 52-week highs outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange for the first time since February. There were only 6 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, down from the 7 issues that appeared on the prior session. Waning leadership has been evidenced by the recent lack of stocks making new highs as the rally came under pressure.

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