About the only thing you can saw that’s good about today’s action is that the major averages closed off their intraday lows. The market was in negative territory all day and the major average finished with solid losses. The COMPQ fell .40% while the SPX declines .45%. Both closed in the lower half of their intraday trading ranges. Volume was higher on the Nasd and while IBD had volume lower on the New York esignal showed it slightly higher. Either way, there was distribution again today and large institutional players were again selling stocks. This adds to an already high level of distribution. All the major averages are now below their important 50dma’s. Leading stocks were generally down as well, but a bit less than the overall market. The leaders index was down .13% on lower volume. The index traded just above it’s 50dma and then recovered late with the market. It closed in about the middle of it’s intraday range. The 9dma continued to move further below the 17dma. At this point I see little reason to hold positions. It has looked many times in the recent past like there would be a real correction only to see the market turn around and rally higher, and this may happen again. The picture looks pretty dark right now and protecting capital is the most important thing. The sidelines look pretty attractive right now. Jerry
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