The market had an overall negative session today. The major averages opened a bit higher but then turned around and sold off into the close. All the major averages finished near their intraday trading lows. The COMPQ and the NDX were hit hardest, dropping 1.09% and 1.15% respectively. The SPX fell .31%. Volume was lower across the board, so there was no distribution. Leading stocks were mostly lower as well with the leaders index falling 1.07% on the day. The index closed in the upper half of its trading range on lower and slightly above average volume. The market was mostly lower today as the weakness after Thursday’s reversal continued. The market opened higher but sold off most of the rest of the day, closing weak. The market had gotten a little ahead of itself as the major averages, particularly the NASD averages, got very extended from their important moving averages. Thursday’s reversal in the major averages had the look of a short term top. The NASD averages in particular were very extended and a consolidation or small correction here would probably be healthy. Right now it doesn’t look like any more than that, but we will have to watch how the market trades in the next few days. Jerry
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