Friday Recap "A look inside the market"

Good morning, futures are up four points and there isn't really any significant news out at the moment. On Friday the futures were up as much as seven points overnight but had fallen back to flat as the open approached as fears of a Greek default returned and Thursday’s closing euphoria evaporated. A sudden drop by Italian banks caused trading to be halted in the shares and that seemed to unnerve traders.

Friday's session opened without a significant gap but the high of the day was the open. Twelve points were gone before 11:00 am at which point the SPX found some support and consolidated until about 1:00 pm when a five point bounce tried to rally the index. But bears quickly turned this back and the last two hours of the week worked gently lower as the low of the day was put on the chart just before the close. Bulls have to be unnerved by Friday’s action as this is not the normal response to a reversal such as we had on Thursday.

For the SPX Index there were 79 components advancing and 398 components declining. On the NYSE 3,140 issues were traded with 1,089 advancing issues and 1,941 retreating issues, a ratio of 1.78 to one declining. There were 49 new highs and 38 new lows. The five day moving average of New Highs is 49 while the five day moving average of New Lows is 38 and the ten day moving average of Net Advancing is 143.

Friday’s volume was less than three quarters of Thursday’s volume. This large of a drop in volume seems significant and suggests less enthusiasm for the bears than the price action suggested. The Breadth Indicators are mixed but more bearish than bullish. The choppy up and down range bound trading appears to have many of the indicators simply stalled.

The negativity in the breadth is obvious,its hard to see any any bright spots but tend day average of Net Advancing remains positive and TRIN is suggesting a bounce. And the NYSE Composite Index outperformed the SPX. A few bright spots for the bulls to hang their hopes upon.