The market put in another negative session today. After opening with solid gains and holding them for a little while, selling came in and the market was mostly lower from then on. There was a mild rally attempt that quickly failed as selling continued into the close. All the major averages finished near their intraday trading lows, a sign of weakness. The New York averages took the worst of it with the SPX falling 1.19%. The COMPQ and the NDX fell .44% and .43% respectively. Volume was higher across the board. It gained 11.74% on the Nasd and 7.62% on the New York. This, combined with the price declines produced a new distribution day on all the major averages. Leading stocks were lower as well. The leaders index fell 1.34% on the day and closed low in its trading range. Volume was slightly lower and below average. The market continued to weaken today. The pattern of strong opens and weak closed is indicative of a market that is likely heading lower. We had higher volume again and this shows that large institutional players were selling stocks today. The distribution day we saw today means that there has been a distribution cluster in recent trading sessions, which is a very negative sign. The charts of the major averages and the leaders index show a lot of damage. It has been pretty futile to try and call tops this year, but the action today is as negative as any we have seen in a good while. This could turn into the correction many have been expecting, or it could rally back as it has done so many times recently. At this point I would bet on the former. Jerry
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