The market put in a negative reversal today. The major averages opened slightly weaker but then reversed on news from the U. K. They went on to strong gains and it again looked like there could be a follow through. Selling came in and all the major averages declined into the close, finishing near intraday trading lows. The COMPQ and the NDX fell .61% and .51% respectively. The SPX declined .80%. Volume was mixed. It gained 7.73% on the New York and declined 5.62% on the Nasd. Leading stocks were lower as well with the leaders index declining .98% on the day. The index closed in about the middle of its trading range on lower and below average volume. The market looked early on like it might produce a follow through as news from the U. K. caused a rally. Sellers came in and drove the market down to finish with solid losses. The same thing happened on Tuesday. The market is having a hard time rallying and can’t produce a follow through. It looked like the major averages might make a run for their 50dma’s but that is getting less likely. A market that can’t rally is usually one that will go lower. That looks more and more like this one will go. Jerry
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