It was a really ugly session today. After deciding it didn’t like the big earnings reports yesterday the market sold off across the board. The major averages opened lower and sold off the entire day. All the major averages finished near their intraday trading lows. The NASD averages were hit the hardest due to weakness in tech stocks, but everything got hit. The COMPQ and the NDX fell 3.64% and 3.65% respectively. The SPX declined 2.31%. Volume was a lot higher across the board, adding another distribution day. Leading stocks were hit hard as well with the leaders index falling 5.01% on the day. The index closed low in its trading range on higher and about average volume. ETFs of leading stocks performed in a similar fashion. Everything got hit today. The NASD averages were the worst off as the market reacted badly to important earnings reports. The damage was severe as the NASD averages broke down below their respective 50dma’s while the SPX is sitting right on this important moving average. Leading stocks have broken badly. There are a lot of important earnings reports coming out the rest of this week and next. In addition there are inflation numbers and a Fed meeting. These could move the market, but the damage done in the last few days is severe. Nothing is written in stone in the stock market, but this is what the end of rallies looks like. Jerry
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