The market sold off today. The major averages traded slightly lower until late in the session when selling came in. All the major averages finished at or very near their intraday trading lows as the selling continued into the close. The Nasd averages were the weakest with the COMPQ and the NDX lower by 1.27% and 1.33% respectively. The SPX declined .65%. Volume was mixed. It increased by 4.22% on the New York and declined by 7.84% on the Nasd. This combined with the price decline produced a new distribution day on the New York averages. Leading stocks sold off as well with the leaders index declining 1.85% on the day. The index closed low in its trading range and is sitting right on the important 17dma support level. Volume was lower and well below average. The market put in a weak overall performance today. The major averages traded somewhat lower before late selling came in and turned a mild decline into a bigger one. There was no buying as prices fell and so they closed at their lows, a negative sign. The distribution count, particularly on the New York averages, is getting to concerning levels. The market seems to be struggling a bit here. The major averages and the leaders index have been consolidating recently as the rally seems to have lost some of its momentum. The higher distribution count joins the weekly Coppock is flashing warning signs. I think it is probably a good idea to be a little cautious until we see if the market can break to the upside from the rest it seems to be taking. Jerry
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