It was an ugly day to say the least. The market opened lower and it was all downhill from there. The major averages took some real hits and broke important support. The COMPQ led the way down with a loss of 1.55% while the SPY fell 1.18%. The COMPQ broke back below it’s 50dma while the SPX closed right on this moving average. All the major averages closed at their intraday lows. Volume rose across the board and was above average on the Nasd. This shows that large institutional players were heavy sellers and added distribution on all the major averages. This continues the recent pattern of declines on higher volume and rebounds on weaker trade. Leading stocks declined much more than the overall market. The leaders index declined 2.82% on the day and closed near it’s low. This takes the index further below it’s 17dma support level. The 9dma has crossed below the 17dma and the relative strength line of the index has made a new low. Only six stocks in the IBD 50 were higher on the day. I don’t know yet if they will change their call in the Big Picture, but I I can’t see how they could consider this anything other than a correction. Exposure to the market should be low right now. Jerry
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