There was no update yesterday due to some computer problems on my part, sorry. The market put in a solid day yesterday, but today wasn’t as good. The market opened slightly higher but couldn’t hold the gains. After bouncing around before the Fed announcement the major averages sold off late and all closed at or very near their intraday trading lows. The Nasd averages were the weakest with the COMPQ and the NDX falling 1.25% and 1.67% respectively. The SPX was lower by .46%. Volume was mixed. It fell 5.70% on the Nasd and rose 12.50% on the New York. This was enough to produce another distribution day on the SPX. Leading stocks were lower as well. The leaders index fell 1.21% on the day and closed low in its trading range. Volume was lower and below average, so there was no distribution in quality growth stocks. The market is still trying to figure out which way it will go. There has been a very fast correction in the Nasd averages and a slightly smaller one in the New York averages. The real question now is if we have seen the worst of it or is there more to come. I don’t think we really know that now, and so must look at several factors. The leaders index is just below its important 17dma and this index should break above this resistance level and challenge its old highs on volume. This would be a very encouraging sign. The COMPQ remains above its 50dma and should hold this support. If it doesn’t it will be the third time would have broken this important moving average, a very bad sign. We will have to see how this plays out, but a defensive posture id probably a good idea right now. Jerry
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