The market opened about unchanged today, but it was all downhill from there. The major averages worked their way lower the rest of the day and late selling saw all the major averages finish at or very near their intraday trading lows. The Nasd averages were the weakest with the COMPQ and the NDX fell by 1.69% and 1.68% respectively. The SPX was off by .81%. Volume was mixed. It fell by 3.80% on the Nasd and rose 8.10% on the New York. The increased volume along with the price decline produced a new distribution day on the SPX. Leading stocks sold off as well with the leaders index falling 4.17% on the session. The index closed in the lower half of its trading range on higher and above average volume. This showed distribution in quality growth stocks as well. The action today was overall pretty negative. The Nasd averages had heavy losses and the NDX is back below its 50dma. The COMPQ finished right on this important moving average. The leaders index is also back below its 50dma now resistance level. When a stock or an index breaks an important moving average, regains it, then loses it again it is very negative. The New York averages are holding their 50dma’s for now. This is the critical item now. The major averages and the leaders index must regain or hold this moving average or we will see lower prices ahead. Jerry
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