After posting two days in a row of strong gains the market had a modest and expected pull back. The major averages opened lower and spent the rest of the session on a mild downtrend. The COMPQ was lower by .44% while the SPX declined .32%. Small caps fell a little more as semiconductor stocks held up with the SOX lower by only .11%. All the major averages closed near their intraday lows, but with the declines so small compared to the gains of the prior two days it wasn’t that big a deal. Volume was lower across the board, just what you want to see as the market pulls back following a rally. Leading stocks gave some ground as well with the leaders index declining .56% on the day. The index closed in the lower half of its intraday trading range, but held above all its short term support levels. Volume on the leaders index was a bit higher, but well below average. It does however show some selling in quality growth stocks. The action today was ok. After the solid gains of the last two sessions a pullback is to be expected and is in fact healthy. The decline was smaller than the advance and on lower volume. The market seems to be on track to rise at least into the end of the year. After that we will have to see. Jerry
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