The market traded little changed on Friday. The major averages closed the session with small changes. The New York averages were the strongest with the SPX gaining .17% while the COMPQ was absolutely flat with a 0.00% change. The NDX was lower by .16%. The greatest positive action was in the small and mid-cap stocks with the RUT and the MID higher by .60% and .70% respectively. All the major averages closed at the bottom of their intraday trading ranges, a negative sign that has persisted for several days. Volume was higher across the board and very heavy, but this was due to Friday being an expiration day. Leading stocks were flat as well with the leaders index higher by only .05%. The index closed about in the middle of its intraday trading range and remained above its short term 9dma support level. It continues to consolidate in a constructive manner and is acting better than the overall market. Volume on the index was higher than Thursday but still below average. Not much was changed by Friday’s action. The major averages continue to struggle a bit as the New York averages are mostly below their 50dma’s and the SPX sitting right on this important moving average. The other New York averages are below this moving average. The Nasd averages are acting better but have had four weak closes in a row. The distribution count is also on the high side. The fact that quality growth stocks are acting better than the major averages and the leaders index is acting pretty well is a positive. You usually don’t see important tops when leading stocks are acting better than the major averages, but the market appears to be struggling to move higher and caution should be used when considering new purchases. Jerry
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