The market put in an overall disappointing performance today. After some early weakness the major averages rallied to decent gains. They didn’t hold as selling came in and all the major averages finished near their intraday trading lows. The NASD averages were the hardest hit with the COMPQ and the NDX losing .93% and 1.06% respectively. The SPX declined .51%. The small and mid-cap stocks were higher. Volume was mixed, higher on the New York and lower on the NASD. This produced a new distribution day on the SPX. Leading stocks continued lower as well. The leaders index fell 2.04% on the day. The index closed in the lower half of its trading range on higher and above average volume. The day’s action was not encouraging. After a big decline like we saw yesterday you want to see a good quality bounce to say the worst may be over. Today the major averages not only couldn’t bounced they declined further. The SPX joined the NASD averages in breaking below its 50dma’s. The market traded higher on a strong GDP report but again sold off late. This is not positive action. The PCE report comes out tomorrow before the open and will likely affect the market, but right now things are not looking good. Jerry
Reply With Quote