The market opened slightly lower today and traded in negative territory all day. The major averages finished in the upper half of their intraday trading ranges, but were still down. The COMPQ closed with a decline of .34% while the SPX fell .11%. Volume was lower across the board, a bit surprising as Friday was the last day before a three day holiday weekend. We are, however, likely to have light volume all week. Leading stocks were lower as well with the leaders index falling .37% on higher but still well below average volume. The index closed in the upper half of its trading range, but below its important 50dma. It finished right on its 17dma, which is also below the 50dma. The market seems unable to stage its usual yearend rally. The Nasd averages continue to lag as tech and quality growth stocks continue to underperform. The major averages are still looking better than leading stocks, and making much progress has been difficult recently. The rally overall in the major averages is still likely intact, but the market appears to be struggling in recent days and even weeks. There is probably going to be light action this week, which can lead to exaggerated price moves, so we may have to wait until next week to get a better idea of where things are going. Since there have not been many meaningful gains of late in either the major averages or individual stocks a degree of caution is warranted. Fresh positions can be taken, but opportunities are scarce and position sizing should reflect this. Jerry
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