The market sold off today, although it closed off its lows. The major averages gapped down at the open and went to significant losses. The major averages recovered much of the losses by the close but still ended with losses. All the major averages closed in the upper half of their intraday trading ranges. Most of the losses for the day came in the opening gap downs. The COMPQ and the NDX fell 1.02% and 1.09% respectively. The SPX lost .94%. Volume was higher across the board. This produced a new distribution day on all the major averages. Leading stocks were hit hard today. The leaders index fell 7.66% on the day. The index closed in the upper half of its trading range on higher and slightly above average volume. The index blew through its 17dma. The action of the market was disappointing today. Despite late strength that saw some of the early losses recovered, it was a very negative session. The COMPQ took out the low of the rally day and so a new count must begin for a follow through. The weekly Coppock is headed lower again after continuing lower last week. The higher volume added another distribution day, and showed a pattern of higher volume on down days and lower volume on up days. The worst part of today’s action was the big sell off in leading stocks. The strong action in these growth stocks has been a light in a pretty difficult market. That may be over. I don’t think we have seen the bottom of the current decline. Jerry
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