The market put in a nasty reversal today. The major averages opened higher but quickly sold off into the close. All the major averages finished at their intraday trading lows. The COMPQ and the NDX fell .42% and .36% respectively. The SPX lost .28%. Volume was higher across the board, producing an additional distribution day on all the major averages. Leading stocks were about flat on the day with the leaders index lower by only .06% on the day. The index closed in about the middle of its trading range on higher but below average volume. The market looked early like it could move moderately higher, but it didn’t last. The major averages started working their way down soon after the open and were hit hard in the last hour. This was a pretty ugly reversal and produced a new distribution day on all the major averages. The distribution count is now very high. The charts of both the major averages and the leaders index still look ok, but the action of the last few days was not encouraging. The market is holding up right now, but I think it is only a matter of time before it begins selling off. Taking new positions here is very dangerous. Jerry
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