The market staged an ugly reversal today. The major averages opened strong and it looked like there would be a nice rally. It didn’t last long. About a half hour into trading the major averages topped out and sold off for the rest of the session. All the major averaged finished at or very near their intraday trading lows, showing that there was little buying interest as prices fell. The Nasd averages held up the best with the COMPQ and the NDX declining .39% and .31% respectively. The SPX lost .84%. Volume was significantly higher across the board. It was higher by 20.69% on the Nasd and 14.94% on the New York. This shows that large institutional players were selling stocks pretty heavily today. Leading stocks did a little better than the overall market. The leaders index was higher by .46%, but the index closed low in its trading range. Volume was higher and above average in what looked like stalling like action. The action of the market today was very negative. It opened strong and closed weak. This is the finger print of a market that wants to go lower. The SPX is now right at the lows of its rally day so a follow through in this major average is pretty much off the table until another low is made. The INDU and the NYA are below their 200dma’s and other major averages are only slightly above this important moving average. The direction of the market right now is clearly lower and the current weakness is likely to continue. Jerry