The market sold off pretty hard today. The major averages started out with slight gains but they didn’t last. They sold off for the rest of the session. All the major averages finished near their intraday trading lows. The Nasd averages took the worst of it as tech and growth stocks sold off. The COMPQ and the NDX fell 2.51% and 2.57% respectively. The SPX declined 1.42%. Volume was higher across the board, according to Esignal. It was up a strong 20.46% on the New York and just .87% on the Nasd. The Nasd number was so close that different data feeds could have different results. These numbers show distribution on all the major averages. Leading stocks were lower as well with the leaders index falling 1.28% on the day. The index tagged its 17dma at its highs early but sold off and closed low in its trading range. Volume was higher, showing distribution in quality growth stocks. The recent positive action reversed today as the market and leading stocks declined. This shows how difficult it is to make any progress right now unless you are almost day trading. Volume showed higher by Esignal. I saw that IBD said volume was lower on both exchanges. I can see that on the Nasd as the change according to Esignal was so small, but the gain in New York volume was very strong and clearly showed distribution. I don’t know where they are getting their volume numbers. Today’s action was another reversal. You get short moves in both directions, making it very difficult to make any progress. A good deal of caution here is a good idea. Jerry
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