The market traded up and down all day before it closed in negative territory. The COMPQ was lower by .85% while the SPX declined .29%. All the major averages closed in the lower half of their intraday trading ranges, a sign of lack of support. Volume was higher across the board, showing that large institutional players were selling stocks today. It also means there was new distribution on all the major averages. Leading stocks were lower as well with the leaders index falling 1.90% and closing in the lower half of its trading range. Volume on the index was lower than yesterday but still well above average. The index traded below its critical 50dma today but closed right on this important still support level. A breach of this support is generally what is considered fatal to the index. The market struggled to make some gains today but couldn’t. Late selling saw the major averages close low in their trading ranges on higher volume. This is a further sign that institutions and other large equity holders are liquidating stocks. The SPX is very close to its 200dma while the Nasd averages have a little more room but seem to be headed in that direction. The leaders index also sits right on its 50dma. A break of these important moving averages would seem to say that this may well turn out to be more than a correction. Jerry