The stock market resumed its losing ways Wednesday, giving up all gains from yesterday's rally and then some. The NYSE composite plunged 2%, the Nasdaq 1.8% and the S&P 500 1.7%. All closed near session lows. Volume rose across the board.
The indexes made new lows and are now 7% to 8% below their prior highs which ended a technical attempt to put a rally together. Losses were broad. *Wednesday's sharp decline wasn't much of a surprise after the low-volume rebound in Tuesday's trading*. Although most leading stocks took part in that rally, most gains were in light volume and sometimes drastically slower trading. *That indicated institutional investors didn't embrace the market's bounce*,* and on Wednesday the higher trading suggested they continued selling*. Before the market open tomorrow, reports on housing starts and jobless claims are due out. Later in the morning, at 10 a.m. ET, the Philadelphia Fed survey, a key gauge of manufacturing activity, is being released. *US Market Outlook*: *Market in Correction* (since May 5) '+'
