The market sold off today on news from the Middle East. The major averages opened lower and went to large early losses. They tried to rally back before more news caused another sell off. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell 1.30% and 1.29% respectively. The SPX declined1.13%. Volume was mixed, higher on the New York and down on the NASD. This produced a distribution day on the New York averages. The overall distribution count is now getting to a concerning level. Leading stocks sold off as well, but held up better than the overall market. The leaders index declined .46% and closed low in its trading range. The index also held its important 17dma. Over night Israel attacked Iran’s nuclear sites. The market sold off early but was recovering pretty nicely until reports came out that Iran fired missiles and drones at civilian targets. This caused the market to sell off and close near its lows. The damage could have been worse, but many did not want to hold positions over the weekend, so the market closed weak. There is likely to be more military action over the weekend so it is difficult to know what will happen on Monday. This is a real test for the rally. If it can hold up during this and continue to advance next week that would be a very encouraging sign. But this and the overhead resistance at the old highs are real obstacles. We will have to see what happens over the weekend, but next week will be very important for the rally. Jerry
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