The market staged what was an overall encouraging performance today. After selling off at the open the major averages continued lower for a little over a half hour then bottomed out. From that point until the close the major averages rallied and erased most of the losses. The New York averages were the strongest as they got back to slightly positive territory. The SPX finished higher by .03%. The Nasd averages rallied also but didn’t recover all their early losses. The COMPQ and the NDX declined by .29% and .25% respectively. Much of this weakness was caused by the big cap tech stocks. All the major averages closed at the top of their intraday trading ranges, showing that buyers were stepping in as prices fell. Volume was higher across the board, so there was another distribution day on the COMPQ. The fact that it closed at the top of its trading range mitigates much of the effect. Leading stocks sold off as well, but finished near their highs. The leaders index declined 1.10% on the day. During trading the index fell below its important 17dma but recovered it. The index did close below its 9dma for the first time in three weeks. Volume was a little higher than yesterday, showing distribution in leading stocks as well. It looked early like there could be a nasty sell off today. The market mostly recovered and turned it into a generally supportive session. There was another distribution day on the Nasd averages, but the overall count is still low. I said yesterday that it looks like we are in a little(so far) consolidation/correction after both the major averages and the leaders index made new highs. The charts of both the major averages and the leaders index look ok right now and if this pull back acts like the others we have had recently we should recover fairly quickly. But you always must be on the alert in case the pullback go further and might signal something more significant. Jerry
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