The markets did mostly nothing yesterday. After opening a little higher the New York averages held those gains the rest of the session and finished high in their intraday trading ranges. The Nasd averages were weaker and spent most of the day in negative territory and closed low in their trading ranges. The COMPQ and the NDX finished with declines of .05% and .21% respectively. The SPX was higher by only .03%. Volume was lower across the board. Leading stocks were generally a little weak on the day with the leaders index lower by .23% and finishing in about the middle of its trading range. Volume was lower than Thursday but still above average. The market has been struggling a bit lately. The leaders index continued its consolidation and is now sitting right on its 17dma support level. It has been in this pattern for eight trading day now and there has been above average volume for twelve trading days. You would prefer to see light volume when an index or major average is consolidating after an advance. The small and mid-cap stocks were the strongest yesterday with the RUT and MID higher by .43% and .36% respectively. The major averages remain near their highs but so far have not been able to break above them. We are in about the same situation we have been in for the last week or so. The leaders index must break out of this consolidation and move into new high ground, hopefully with volume behind it. A break below the 17dma support level would be very negative. Also the major averages need to show strength and rally to new highs to show that the rally will continue. It could go either way at this point, although the situation generally looks more positive than negative. Jerry
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