The market put in another negative session today. After opening flat to lower the major averages were in negative territory for pretty much the rest of the day. The Nasd averages were again the weakest with the COMPQ and the NDX off by .91% and .90% respectively. The SPX was down by .37%. All the major averages finished in the lower half of their intraday trading ranges, a sign of lack of support. Volume was mixed. It was higher on the New York and lower on the Nasd. This means that the Nasd averages avoided fresh distribution while the New York averages logged another day. Leading stocks did a little better with the leaders index about flat on the session. The index was lower by only .04%. It closed in the upper half of its trading range, a sign of support. Volume was lower than yesterday but still well above average. Today’s action would have to be considered negative. The Nasd averages continued to lead the way lower while quality growth stocks are struggling to maintain recent gains. The leaders index finished below its short term 9dma now resistance level and again tagged it’s more important 17dma still support level. The charts of the major averages still have not had serious damage done, but the COMPQ has been lower for three says in a row on above average volume. The most important danger sign right now is the buildup in distribution days. It is at worrisome levels and there has been a lot of it in the last few days. We must see some positive action in the major averages and in leading stocks very soon or raising cash will be the most prudent path. Jerry
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