The market got hit today in the first really negative session since the rally began. The major averages opened a bit higher but then worked their way lower the rest of the day. All the major averages finished near their intraday trading lows. The NASD averages led the way as the COMPQ and the NDX fell 1.67% and 1.68% respectively. The SPX declined .89%. Volume was mixed, higher on the NASD and lower on the New York. This produced a distribution day on the NASD averages. Leading stocks were lower as well. The leaders index fell .70% on the day, closing low in its trading range. Volume was higher and above average. Maybe the market was nervous ahead of Powell’s speech tomorrow and sold off. It was the first really negative session and the first distribution since the rally started. The NASD averages sold off hard on higher volume and closed fractionally below their respective 50dma’s. Breaking this important moving average would be a very negative development. A lot depends on Powell’s speech tomorrow. If the market reacts poorly and the NASD averages break this important support a more defensive posture would likely be called for. Powell speaks early tomorrow. Jerry
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