The market opened lower and spent the day in negative territory. All the major averages finished in the lower half of their intraday trading ranges. The COMPQ and the NDX fell .49% and .37% respectively. The SPX declined .72%. Volume was mixed. Higher on the New York and lower on the Nasd. This produced a distribution day on the New York averages. Leading stocks were hit hard with the leaders index falling 2.45% on lower and below average volume. The index closed in the lower half of its trading range and broke below its 50dma support. The action today reinforced the negative camp. The markets were weak and there was distribution on the New York averages. The overall distribution count is getting pretty high. Leading stocks are also showing weakness as seen in the leaders index falling below its important 50dma support level. A seeming worsening of the banking situation with more regional banks reportedly in trouble also didn’t help. It looks like the Fed is done raising interest rates but will not likely cut them soon. I think the market will work its way lower from here as the current rally attempt looks pretty much dead. That can set the market up for a follow through that will hopefully be well confirmed and a good rally. Until then a good deal of caution is warranted. Jerry
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