Leaders Index 12-26

The market was soft today and after being lower early a mid day rally attempt fizzled and the major averages closed near the lows of their trading ranges. They were down between one third and three quarters of one percent, continuing their recent side ways action. Leading stocks sold off more than the overall market with the leaders index falling 1.02% on volume that was well below average but higher than Monday’s shortened session. Volume was higher across the board and although it was easy to beat Monday’s levels it still counts as a distribution day on all the major averages. The build up in distribution days caused IBD to go to rally under pressure although the number of distribution days on the MEM is lower. The market continues to struggle and it is difficult to make any progress. Maybe some sort of deal on the fiscal cliff would give the market a boost. I will be away for a few days and the updated will resume on Monday. Jerry