The market sold off yesterday on mixed volume. The major averages opened lower and then tried to rally, but selling came in toward the close. The New York averages closed in about the middle of their intraday trading ranges while the Nasd averages finished near the bottom of their trading ranges. The COMPQ and the NDX lost .87% and .73% respectively. The SPX declined .72%. Volume was mixed. It rose 2.22% on the New York and fell 5.29% on the Nasd. The higher volume on combined with the price declines produced a fresh distribution day on the New York averages. Leading stocks declined as well with the leaders index falling 4.04% on the session. The index closed low in its trading range on higher but still below average volume. It also broke below its short term 9dma. The market was weak yesterday the entire session. There was a rally attempt during the day that didn’t hold and the selling came back in. The market is starting to get a little sloppy, but the overall trend remains up. The distribution count s a little high right now and there are other red flags out there that I have recently discussed. There are not enough signs that the rally is in immanent trouble and so the market will likely work its way higher, but staying close to the exits id probably a good idea. Jerry
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