The market started out strong today after rallies in Asia an Europe. In fact the Dow set a new 52 week intraday high. It didn’t last long as there was a serious reversal and the major averages sold off hard into the close and finished at the lows of the day. Volume increased strongly and was well above average. This produced distribution across the board. The losses ranged from 1.44% on the COMPQ and 1.97% on the NYA. All the major averages are near or at their 50dma’s and the NDX closed below it. Leading stocks got hit even harder than the overall market as the leaders index fell 3.03% on much higher and well above average volume. The last time there was above average volume on an up day was 13 days ago and since then there have been 8 down days on above average volume. After breaking below it’s 50dma three trading days ago the index was unable to get back above it on Friday and fell to new lows today. As I said on Thursday the rally really looks like it is over. Jerry
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