The market took a break after some positive action in the last few days. The major averages opened higher and after moving up for about an hour spent the rest of the day working their way lower. All the major averages finished near their intraday trading lows as selling came in. The Nasd averages were the weakest with the COMPQ and the NDX both declining .51% on the day. The SPX fell .19%. Volume fell across the board. It declined 19.96% on the New York and 8.41% on the Nasd. Leading stocks were lower as well with the leaders index falling 1.15% on the session. The index closed in the lower half of its trading range on lower and below average volume. The index tried to overcome its declining short term 9dma but was unable to. The market took a break yesterday after solid advances in the previous couple of days. Late selling came in and the major averages closed weak, but volume was lighter so it shows that selling pressure from large institutional players was moderate. The major averages are still in a range where they could produce a follow through, but this has not happened yet. At this point we will have to wait and see if they can rally on strong volume. The 50dma of the major averages and the leaders index is still the biggest hurdle for any rally attempt to overcome. October has been a month where we have seen market weakness, but also a lot of important bottoms have been put in during this month. We will soon be in a seasonally positive period and that could be helpful to a rally attempt. If we get a follow through we will have to see how well confirmed it turns out to be. The weekly Coppock is not yet in a position to confirm, but it is close and could be in a couple of weeks. We will have to see how all this plays out in the next couple of weeks. Jerry
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