The market took it between the eyes again today as the major averages were down all day. They sold off into the close to finish at the lows of the day and with declines of between 1.3% and 1.5% on the session. Volume was up across the board and was well above average on both exchanges. This showed that there was real conviction in the selling. Leading stocks got hit even harder than the overall market with the leaders index declining 2.51% on lower and slightly below average volume. The declining 17dma still rules the chart. The fact that we have sold off this hard without a bounce in the last month is discouraging and the COMPQ is now more than 10% below it’s recent intraday high. An overbought market that won’t correct is going higher, just like an oversold market that won’t rally is headed lower. The evidence that this is more than an intermediate correction is mounting fast. Jerry
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