It was a rough session for the markets. The major averages opened lower and sold off the entire day. Late selling caused all the major averages to close at their intraday lows, erasing yesterday’s gains. The COMPQ led the major averages lower with a decline of 1.38% while the SPY was off by .90%. Hit worst of all were the small caps. After dancing with it’s 200dma for over a week the RUT fell below this important moving average with a loss of 1.62%. Volume was much higher across the board so there was real selling in the day’s action. This contrasts with yesterday’s advance on light volume. Leading stocks were hit harder than the overall market with the leaders index falling 1.39% on higher but still below average volume. The index had rallied back above it’s 50dma but fell back below it with today’s action. It is a negative sign when an index or a stock breaks below this moving average, rallies back above but but can’t hold. There is now a clear down trend line in the leaders index that has been touched three times. This adds weight to the importance of this trend line. The index must get above the 50dma and this trend line with some conviction to inspire any confidence that quality growth stocks can have a worth while move. Right now both the market and individual stocks are in a trendless choppy situation that is unlikely to produce gains worth the trouble. I have always said that you should be in the market when it is easy to make money. It isn’t easy now. Jerry