The market opened with gains today but quickly went into a consolidation. After trading sideways most of the day the major averages finished near the bottom of their intraday trading ranges. The New York averages were the strongest due to strength in financial stocks. The SPX gained .22% while the COMPQ rallied .15%. The NDX lost .02%. Volume was higher across the board. This was enough to produce stalling distribution days on all the major averages. Leading stocks were mixed with the leaders index higher by only .15% on the day. The index closed in the lower half of its trading range and volume was slightly higher. The market could not hold on to early gains and closed near its lows. This gave us a stalling distribution day on all the major averages. It was not overall a positive session, but the distribution count is still low so it should not raise any red flags yet. The COMPQ held above its 50dma now support level and as long as this continues the action is ok. A break below this moving average would be very negative, but a bounce and move higher would indicate a likely run for the 200dma. The overall picture still positive and the current rally remains on solid ground, at least for now. Jerry
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