It was another ugly session today. The major averages opened lower on the Nasd and higher on the New York. It then sold off hard and bottomed out about half way through the day. They closed off their intraday lows but still near the bottom of their trading ranges. The COMPQ was hit hardest with a decline of 1.48% while the SPX fell .77%. Volume was higher across the board and above average on both exchanges. This added another distribution day on all the major averages. Leading stocks were hit as well with the leaders index falling 2.49% on the day. The index closed below it’s important 50dma for the first time since the big sell off of last August. Volume on the index was higher than yesterday and also above average. This shows that there was real selling on both the major averages and quality growth stocks by large institutional players. The relative strength line of the index also took out recent lows, showing how much they are lagging the overall market. The SPX broke below it’s 50dma after breaking it’s 200dma yesterday. The 50dma of the COMPQ rallied above it’s 200dma in a golden cross, but given recent action it’s hard to get to excited about it. The market is looking worse by the day. It may be sloppy until we get the results of the Fed announcement next Wednesday and see how the market reacts to it. For now things are looking a bit bleak. Jerry
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