After four up sessions in a row the market sold off today. The major averages opened lower and were in negative territory the entire day. A little late strength saw them close off their intraday lows but it was still a negative session. The COMPQ finished with a decline of .82% while the SPX fell .68%. Both closed in the upper half of their intraday trading ranges so there was some buying as prices fell. Volume was higher across the board, so this counts as a distribution day on all the major averages. Leading stocks were lower as well but held up better than the overall market. The leaders index fell .33% on the day, but finished in the upper half of it’s intraday trading range. The chart on the leaders index looks ok and the relative strength line of the index set a new high. Volume on the index was higher than Friday so there was distribution on this index as well, but volume was still below average. A distribution day within two or three days of a follow through increases the odd considerably that the follow through will fail. It is to early to call that yet, but the distribution increases the risk levels. Jerry
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