The market had an ugly reversal today. After opening mixed there was some early strength and the major averages posted modest gains. That changed when selling came in and the major averages reversed lower and sold off pretty hard. All the major averages finished near the bottom of their intraday trading ranges. There was some strength in the big cap tech stocks and the NDX outperformed with a decline of only .02%, although it had solid gains earlier in the day. The COMPQ and the SPX were off by .38% and .35% respectively. Volume was higher across the board. It rose 20.92% on the Nasd and 11.06% on the New York. Leading stocks were lower as well with the leaders index falling 1.74% on the day. The index closed in about the middle of its trading range and held its short term moving averages. Volume was lower and below average. The action of the market today was negative. The kind of high volume reversals we saw today can be dangerous. They often result in lower prices. The higher volume added a distribution day on all the major averages and showed that large institutional players were dumping stocks today. The risk level increased quite a bit today. Taking something off the table is probably not a bad idea here. Jerry
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