The market was a mixed picture today. It sold off a couple of times then rallied pretty strongly before losing some ground before the close. The New York averages had some gains but the COMPQ got hit, with AAPL off over six percent. Volume was higher across the board producing a distribution day on the Nasd. Leading stocks continued to decline as the leaders index lost .86% on lower and below average volume. The index is following the pattern of the major averages and is losing it’s recent rally. The RS line of the index is looking pretty sickly. The COMPQ regained it’s 200dma in this rally and could not hold it, a bad sign. A declining 50dma is also approaching the 200dma with a potential death cross coming. The rally attempt is clearly struggling and recent breakouts are either failing or going nowhere. If the market doesn’t rally quickly with conviction it will probably roll over. Jerry
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