There was a bit of a mixed market today with the weakness in the Nasd and technology averages. After opening strong all the major averages, except the DOW, reversed and lost their gains. The Nasd averages led the way lower with the COMPQ and the NDX losing .42% and .48% respectively while the SOX declined .72%. The New york averages held up better as the SPX fell .07%. All the major averages closed at or near the bottom of their intraday trading ranges, a negative sign. Volume was higher across the board, not what you want to see on an overall weak session. The decline in the SPX was too small to qualify as distribution but it does count as distribution on the Nasd averages. In any event, the overall distribution count remains moderate. Leading stocks put in a mixed performance, with the big cap tech stocks generally lower. The leaders index was up a bit on the day with a gain of .11%. The index closed in the upper half of its trading range but below its opening price. The index continues the hold above its short term 9dma, but it has tagged this support level three trading days in a row. If it keeps doing this the chances of breaking below it increases. Volume was a bit higher today than Friday. The market leaders in the tech sector are not rebounding from Thursday’s reversal very well. The last time there was a reversal like this was on 6/9 it took about three weeks for the averages to regain their old highs. These leaders and all the major averages must rebound with some real conviction or there may be lower prices ahead. Jerry
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