The market got slammed pretty hard today. The major averages started selling off just after the open and continued lower for the remainder of the session. All the major averages finished pretty much at the bottom of their intraday trading ranges. The Nasd averages were the weakest with the COMPQ and the NDX declining 3.02% and 3.16% respectively. The SPX lost 2.37%. Volume was higher across the board. It gained 19.68% on the Nasd and 14.17% on the New York. This was enough for fresh distribution on all the major averages. Leading stocks were hit as well with the leaders index falling 2.85% on the day. The index closed near the bottom of its trading range and is back below its 17dma, although it held its 9dma. Volume was lower, showing that there was not heavy selling in quality growth stocks today. The market fell pretty hard today and pretty much wiped out yesterday’s positive action. There was constant selling throughout the session and all the major averages closed weak. The Nasd averages are showing particularly poor action. I said after the reversal earlier this week the major averages might rally to test their 50 day moving averages. The Nasd averages rallied to just below this important moving average yesterday and today they look like they will be turned back. The New York averages are not acting much better. The higher volume today showed that large institutional players were selling stocks today. There isn’t much to get excited about right now and the market appears to be headed lower. Jerry
Reply With Quote