Yesterday’s weakness continued today as the major averages sold off further. All the major averages finished in the lower half of their intraday trading ranges and volume was lower across the board. This allowed the major averages to avoid another distribution day. The COMPQ and the NDX fell .96% and 1.00% respectively. The SPX declined .76%. Leading stocks were lower as well with the leaders index falling 1.85% on the day. The index closed in about the middle of its trading range on higher and well above average volume. The market continued to decline today as there was no bounce after yesterday’s sell off. There was some weaker than expected economic news and the market seems to be concerned about recession now. The COMPQ and the SPX both broke below their respective 50dma’s today in negative action. Breaking this important support is worrisome. The rally attempt is still intact but few stocks are setting up and producing worthwhile gains. We will see a number of important companies reporting earnings next week and that will effect the direction of the market, but getting heavily invested right now is risky. Jerry
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