The market sold off pretty hard today. The major averages opened lower and sold off all day. The COMPQ finished with a loss of .79% while the SPX fell .86%. The both finished at the bottom of their intraday trading ranges, showing that there was no buying as prices declined. Volume was higher across the board and above average on the Nasd. This produced another distribution day on all the major averages. There are now four distribution days on both the COMPQ and the SPX. This is getting to be a fairly high level, and while it is not at dangerous levels yet it is getting close. Leading stocks were down on the day as well, but the leaders index again outperformed the overall market. The index was off by .22%, but it closed above the mid point of it’s intraday range and above it’s opening price. The relative strength line if the index also made a new high. Only eight stocks in the IBD 50 were up on the day. The index continues to remain above it’s short term moving average so it is still consolidating in a constructive manor. The market is still going nowhere and about the best thing it has going for it now is that quality growth stocks are outperforming. Jerry
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