The market sold off again today and more than lost yesterday’s modest gains. The major averages opened slightly lower and after a couple of feeble rally attempts sold off and finished near the bottom of their intraday trading ranges. The Nasd averages were hit the hardest due to weakness in tech stocks. The COMPQ and the NDX fell 1.43% and 1.79% respectively. The SPX lost 1.13%. Volume was mixed. It gained 4.91% on the New York and fell only .64% on the Nasd. Leading stocks were lower as well with the leaders index falling 1.22% on the session. The index closed in the lower half of its trading range on lower and well below average volume. The 17dma of the leaders index has been resistance in the last few trading sessions. The market continued weak today with a sizable loss on higher New York volume. This produced another distribution day on the SPX. The major averages are almost back down to the lows of last week before the four day rally started. The NDX traded below the lows of 9/6 but closed just above them. At this point it looks like the market is going to go and test the June lows. The picture is pretty negative and I don’t see any reason to try to swim against the tide. Jerry
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