Leaders Index 1-29

The market started off lower today with most of the weakness in the Nasd averages. The market rallied later in the day and all the New York averages closed with decent gains and the COMPQ finishing flat. They all closed at the top of their trading ranges, which is positive. Volume was higher across the board. Leadership is starting to act more sloppy with more and more quality stocks acting poorly and selling off on volume. The leaders index recovered early losses and closed slightly higher on the session. The index rose .35% on lower but still above average volume. It regained the important 17dma after trading below it early. I said last week that there were signs that the rally was aging and now leading stocks are showing cracks. The rally is not over yet, but a higher level of caution is now warranted. Jerry