The market sold off at the open and after a couple of weak attempts to rally sold off for the rest of the session. A little late uptrend saw the major averages close off the lows of their intraday trading ranges. The COMPQ fell .21% while the SPX declined .50%. Both closed near the bottom of their trading ranges, a sign of a lack of support. Volume was higher across the board and about average on the New York. This was enough to produce a new distribution day on all the major averages. Leading stocks did better than the overall market with the leaders index gaining .36% on the day. The index closed just below the mid point of it’s trading range and after tagging it’s 17dma at it’s lows rallied back to close right on it’s short term 9dma. The relative strength line of the index moved into new high ground while prices continued to consolidate. The major averages are still struggling and the charts of the New York averages are looking a bit sickly as their 50dma’s start to turn down. We need to see both quality growth stocks and the major averages rally soon and with some conviction or the risk level will increase. Jerry
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