The market had it’s first real sell off today in a while. The major averages opened lower and declined for the rest of the session. The COMPQ led the way down with a loss of 1.10% while the SPX declined .64%. The worst losses were in the semiconductors and small caps with the SOX lower by 1.31% and the RUT declining 1.97%. All the major averages closed at or near their intraday trading lows. Volume was higher across the board, although still below average. This produced distribution on all the major averages. The overall count is mixed, but the level on the Nasd averages is getting a little high. Leading stocks did a little better than the overall market with the leaders index losing .21% on slightly lower volume that was well below average. The index closed in about the middle of it’s intraday range and again tagged the short term 9dma before finishing above this short term moving average. The index seems to be falling into another consolidation after breaking above one five trading days ago. There was not to much damage done to the charts of the major averages today, although the MID and NDX broke back below their 200dma’s that were just retaken. The rally is still intact and it would take more selling to darken the picture. Jerry
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