The market was weak again today for the second session in a row. After opening lower the major averages spent the rest of the day working their way lower. Late selling saw all the major averages finish at their intraday trading lows, a sign of weakness. The New York averages were a little weaker with the SPX down by .65% the COMPQ and the NDX declined by .46% and .48% respectively. Volume was lower across the board. It fell by 2.19% on the New York and 4.99% on the Nasd. Leading stocks were lower as well, but the declines were generally less than the overall market. The leaders index fell by .27% on the day. It held above its short term 9dma support level and closed in about the middle of its trading range. Volume was lower and extremely light. The action of the market today was overall negative. Prices fell throughout the session and the major averages closed at their lows of the day. The good news today is that volume was lower on both exchanges. This means that large institutional players were not selling stocks heavily. The chart of the leaders index continues its sideways action as its consolidation continues in a pretty constructive manner. It is not unusual to see the market take a rest after making new highs and so far the pullback of the last two days has not done much in the way of real damage. The uptrend is still intact, but you don’t want to see many more days like we have seen in the last couple of sessions. Jerry
Reply With Quote