Leaders Index 9-3

The market started off strong today and early on it looked like there might be follow through type action. The market then lost virtually all it’s gains after republicans seemed to support strikes on Syria. There was a bit of a rally near the close that kept all the major averages in positive territory for the session, although they all closed in the lower half of their trading ranges. This action had the feel of a mild reversal and volume was higher across the board. This was not hard considering Friday’s light pre holiday trading and volume was above average on both exchanges. Leading stocks did a bit better than the overall market as the leaders index rose .65% on higher and about average volume. Quality stocks started off strong but like the overall market gave up most of their early gains. The leaders index closed below it’s opening price, which is a sign of weakness. Overall the current correction has been mild and many leading stocks are holding up well. The A’s minus E’s turned up on Friday, which is a sign of strength. The market will be volatile with comments and voted on Syria due over the next week or two. Both the major averages and leading stocks are still caught in a trading range with corrective action mostly on the New York averages. We will have to wait and see in which direction the market will break. Jerry