It was a mixed session today. The CPI report came in lower than expected and caused a partial rally. The NASD averages and the SPX declined due to weakness in large cap mostly tech stocks. The COMPQ and the NDX fell 1.95% and 2.24% respectively. The SPX lost .88%. All the major averages finished low in their intraday trading ranges. Volume was higher across the board. This produced a new distribution day on all the major averages. Leading stocks were lower today with the leaders index falling .73% on the day. The index closed in the lower half of its trading range on higher but below average volume. The market had a mixed session today. The NASD averages and the SPX were lower. The cause was weakness in the big cap mostly tech stocks. Those are the stocks that have driven the market higher. The small and mid-cap stocks had very strong days today. There have been many times in the recent past where it looked like the small and mid-cap stocks were coming on only to have them roll over. It is too early to tell if this move has any legs, but the leaders did sell off today. The NASD averages had gotten to far extended from important moving averages, and still are. It is possible that we are seeing the beginning of a rotation in leadership, but it is way to soon to make that call. All the damage in the NASD averages and the SPX today came from the small number of big cap, mostly tech, stocks that have led the market higher. Market internals today were strong. The PPI comes out tomorrow and earnings season really kicks in tomorrow and next week. Jerry
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