The market got pasted pretty good today. The major averages opened lower and after holding on for a little while started selling off and continued into the close. All the major averages closed at or very near their intraday trading lows as selling continued into the close. The Nasd averages again took the worst of it with the COMPQ and the NDX falling 3.02% and 3.10% respectively. The SPX fell 1.48%. Even small and mid-cap stocks, which have been the leaders recently sold off pretty hard. Volume was mixed. It fell 10.01% on the New York and rose 4.49% on the Nasd. This combined with the price decline was enough for a new distribution day on the Nasd averages. Leading stocks were hit pretty hard as well with the leaders index declining 2.90%. The index closed low in its trading range and is sitting right on its short term 9dma support level. Volume was higher and above average. This showed heavy selling in leading stocks. After positive action yesterday the market sold off today. The Nasd averages again lost their 50dma’s in today’s action. When a stock or an index breaks below this important moving average, regains it and then loses it again it is a sign of real weakness. The New York averages are acting a little better as the rotation out of growth and tech stocks continued. Right now I don’t know what the market is going to do in the short term. It’s kind of a pay your money and take your chances market, so be careful. Jerry
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