The market sold off yesterday with the major averages finishing off their lows but still with meaningful losses. They closed down about a half of one percent on average with higher volume across the board. This produced distribution days on all the major averages. After bouncing back above the 21dma on Thursday's rally they broke back below it yesterday. Leading stocks performed a touch better than the overall market with the leaders index falling .31% on higher volume, giving us distribution on this index also. The leaders index has also not been able to get back above it's 17dma. The market is developing a pattern of higher volume sell offs and lower volume rallies, an inability to hold important moving averages and distribution days are starting to build. For the first time since the current rally that started with the FTD on July 26 there are real signs of stress. The market must start to rally convincingly soon or we may have seen the highs of this move. Jerry
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