The market put in an overall weak session today. The major averages opened slightly higher but couldn’t do much of anything from there. The Nasd averages were weaker with the COMPQ and the NDX lost .24% and .12% respectively. The SPX was slightly higher with a gain of .16%. All the major averages finished near their intraday trading lows as late selling came in. Volume was mixed. It was higher by 5.09% on the Nasd and lower by 21.19% on the New York. Leading stocks did very little after yesterday’s big decline. The leaders index was about flat with a decline of only .10%. The index closed in the lower half of its trading range and moved further below its 50dma now resistance level. Volume was lower and below average and the relative strength line of the leaders index moved further below its 50dma. The action of the market today was disappointing. After a big decline you want to look to the quality of the bounce to see if the worst is likely over. Today’s action makes it look like it isn’t. The market opened higher but closed weak. This is indicative of a weak market that is likely to see continued selling. There was an additional distribution day on the Nasd averages today and the overall level of distribution on the major averages is at worrisome levels. Leading stocks continued mostly weak today and there are few really attractive opportunities around today. The weight of the evidence right now points to lower prices ahead and a defensive posture is warranted. Jerry
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