The market suffered an ugly reversal today. The major averages opened strong and posted solid gains ahead of the Fed announcement. When the announcement came out a sell off began and accelerated during the press conference. The Nasd averages were the weakest with the COMPQ and the NDX falling by 2.17% and 2.29% respectively. The SPX declined by 1.54%. All the major averages closed low in their intraday trading ranges, showing there was little support as prices fell. Volume was higher across the board and above average on both exchanges. This means that large institutional players were selling stocks heavily. Leading stocks were hit as well, but maybe not as much as the overall market. The leaders index fell .81% and closed low in its trading range. Volume was higher and above average, showing that there was heavy selling in quality growth stocks as well. The market had another day of weak action. The reversal of early strength and weak close is very negative. Market participants reacted poorly to the Fed announcement and press conference as it was not as dovish as many had hoped. The major averages took out recent lows and are now at their lowest levels in over a year. Nothing in the way of individual stocks are working or looking anywhere near buyable. There is really no reason to be long any positions and cash is clearly the place to be. Jerry
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