The market suffered a nasty reversal today. After opening higher after higher than expected new jobless claims the major averages reversed and sold off for the rest of the session. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell 2.05% and 1.80% respectively. The SPX declined 1.85%. Volume was mixed. It declined slightly on the Nasd and rose a lot on the New York. This combined with the price decline produced another distribution day on the New York averages. Leading stocks were hit hard as well with the leaders index losing 3.52% on the day. The index closed low in its trading range on much higher and above average volume. The market put in a very negative session today. Early strength was lost and significant selling came in, much of it due to a big sell off in financial stocks. Important support was lost as the SPX broke below its 50dma and its 200dma. The COMPQ lost its 200dma and closed right on its 50dma. There was also significant distribution in individual stocks today. The market is pricing in higher than previously expected interest rates. The employment report will come out tomorrow before the open and it will certainly effect trading. Real damage was done today and the market certainly appears to be headed lower in the short term. There will be no update tomorrow. Jerry
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