The market opened weaker and was down for about half the session before a rally attempt recovered the losses and took the New York averages into positive territory. Late weakness erased those gains. The Nasd averages were the weakest with the COMPQ falling .49%. The SPX finished the day flat by losing only .02%. All the major averages finished in the lower half of their intraday trading ranges. Volume was mixed, higher on the Nasd and slightly lower on the New York. That was enough to produce a new distribution day on the Nasd averages. The real weakness on the day was in the semiconductors and the transports, both showing declines of greater than one percent. Leading stocks were flat on the day with the leaders index gaining only .01%. It closed high in it’s intraday trading range and is still sitting on a confluence of it’s 9dma , 17dma and 50dma. The COMPQ moved further below it’s 50dma resistance level and the semiconductor and transport averages broke important support. Today’s action did little to help resolve the question of which way the market is headed. I still think the direction will be down, but who really knows at this point. jerry
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