The market opened little changed today and traded that way most of the session. Late selling came in and drove the major averages to moderate losses. All the major averages finished at or very near their intraday trading lows as selling continued into the close. The Nasd averages held up a little better with the COMPQ and the NDX lower by .82% and .69% respectively. The SPX lost 1.16%. Volume was higher across the board. It gained 14.42% on the Nasd and 10.98% on the New York. This shows that large institutional players were selling stocks today and there was a fresh distribution day on all the major averages. Leading stocks sold off as well with the leaders index falling 1.89% on the day. The index traded below its 9dma support level during the day but closed above it. The index also finished in the upper half of its trading range on lower but still above average volume. The market was holding up fairly well today until some late selling came in and caused losses for the day. The declines combined with the higher volume caused a distribution day on all the major averages, but the overall count is still modest. The higher volume showed institutional selling as large players were unloading stocks. There aren’t any real signs of trouble yet, but this rally doesn’t seem to have a lot of strength. There are indicators that are flashing yellow or even red, like the % of stocks above their 200dma’s or the high number of bullish advisors. Some rallies are really strong and produce excellent gains. Others are weaker and don’t really do to much for you. This one seems to me to likely be the latter. Frankly, I wouldn’t mind something of a selloff that could set up a solid rally. Jerry
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