The market sold off today after yesterday’s gains. The major averages opened lower and after a rally attempt the selling came back in and lasted the rest of the day. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell .91% and 1.00% respectively. The SPX declines .84%. Volume was lower across the board, so there was no new distribution today. Leading stocks sold off as well. The leaders index fell .33% on the session. The index closed in the lower half of its trading range on lower and below average volume. The chart of the index is still holding up. The market was holding up ok until some selling came in and caused a drop. A good chunk of yesterday’s gains were lost, but the major averages held important support. The market is still holding up overall, but there are some worrisome items out there. The distribution count is getting high and some short- term indicators I look at have turned down. The charts of the major averages still look ok, but they must break above the old highs for this rally to go much farther. Leading stocks are still doing ok, but several recent breakouts are struggling. The Fed announcement comes tomorrow and could set the tone for the market, but it is unlikely that there will be any real surprises. Jerry
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