The market continued the recent pattern of opening higher and closing weak. This is a negative for the direction of the market in the near term. The major averages opened higher but it was pretty much all downhill from there. All the major averages finished low in their intraday trading ranges, a sign of little buying interest as prices fell. The declines were pretty evenly divided with the COMPQ and the NDX declining .45% and .33% respectively. The SPX lost .57%. There were larger losses in small and mid-cap stocks. Volume was lower across the board, so there was no distribution today. It fell 17.13% on the New York and 2.33% on the Nasd. Leading stocks were mixed on the day. The leaders index declined .14% on the day and other ETF’s of growth stocks were mixed. The index closed in the lower half of its trading range and held its 17dma. Volume was lower and below average. The action of the market today was not encouraging. We continued the pattern of strong opens and weak closes, which usually indicates a weak market. Leading stocks are generally struggling as well and meaningful gains are hard to come by. Both the MID and the RUT are below their 50dma’s right now. The SPX is just above this important moving average while the NYA and the INDU are both below it. There is some real weakness right now. We have seen this before and watched the market recover, but right now the near term outlook points to lower prices ahead. Jerry
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