The GMI held at +6 and the Dow 30 stocks were strong in the face of a weak tech sector, led by the GOOG decline. 77% of the Dow 30 stocks advanced on Wednesday, but only 60% of the Nasdaq 100 and 58% of the S&P 500 stocks advanced. 
The GMI-L remains at 100 and the GMI-S reclaimed the 75 level. My remaining indicators were level or stronger. Wednesday was the fourth day in the short term QQQQ up trend (U-4)……….
In spite of this strength in the internal market indicators I remain somewhat defensive in view of the weakness in some of the market leaders. The abrupt fall in GOOG shows the potential weakness of a stop loss order in a sudden gap down. Persons with a close stop loss order on GOOG would have been hurt by the fact that GOOG opened Wednesday at 389.03, way below Tuesday’s close of 432.66. For example, a sell stop at 429 would have been executed somewhere around 389. The problem is not with stop orders–they provide necessary, though imperfect protection against a large loss. The problem is in holding a stock when it is about to announce earnings–especially if it has already risen a lot and other stocks are getting slaughtered even after releasing decent earnings…..
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