The market opened lower and sold off pretty hard. The major averages posted some meaningful losses until buying later in the session erased some of the declines. The Nasd averages were the weakest with the COMPQ and the NDX declining .63% and .58% respectively. The SPX fell .46%. All the major averages closed in the lower half of their intraday trading ranges, so while they finished off the lows the close was not strong. Volume was higher across the board, producing fresh distribution days on all the major averages. Leading stocks were lower as well with the leaders index falling 1.86%. The index finished in the lower half of its trading range, just like the major averages, and is back below its important 17dma. Volume was higher but below average, showing that there was real selling in quality growth stocks. The market is acting more and more sloppy. The fact that the market closed off its lows is good, but it still finished in the lower half of its trading range showed that the overall action was weak. The distribution count is getting pretty high and there was a Hindenburg lite day on Monday. The A’s minus E’s and the Summation Index are still heading lower. There has not been enough damage done to say the rally that started in late December is over, but it is struggling right now. A good deal of caution is warranted at the present time. Jerry
Reply With Quote