6:33 AM

Yesterday was clearly a distribution day, especially for the small cap stocks. The SP Small Cap 600 was down 1.8% with a 10 to 1 ratio for decliners over advancers, and the Russell 2000 was down 2.1% with decliners leading advancers by a  11 to 1 margin.  Volume increased and shot up to the 50 day moving average line as the SP 600 filled the gap that was created last Tuesday. Declining volume led advancing volume by a 10 to 1 margin.  If we have another day like this in the small cap stocks, this market could begin to unravel in a hurry. A 2.1% loss in the Russell in one day is a concern. Also, I just noticed that the number of New Highs in the COMP fell sharply on Friday while the index was making a new high.

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