The market got hit at the open yesterday on news of tariffs being placed on China which drew an immediate response. The major averages sold off at the open but made their lows early in the session and then worked their way higher. The COMPQ finished with a loss of .19% while the SPX declined .10% at the close. All the major and secondary averages closed at or very near their intraday trading highs, a sign of support. Volume was higher across the board, but this was due to the fact that Friday was an expiration day. Leading stocks followed the pattern of the overall market and closed high in their trading ranges. The leaders index declined .65% on the day, but finished in the upper half of its trading range and above all its short term moving average support levels. Volume was very high, along with the market. Yesterday’s action was really not to worrisome as the market recovered most of its early losses. The declines in the major averages was so small at the close that none produced fresh distribution on the day. The fact that they closed so high in their trading ranges shows that there was buying support as prices fell. The picture still looks positive. Jerry
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