The market finished the session with small gains, but overall it was a disappointing day. The major averages opened strong with solid gains all around, but the highs were made early and they spent the rest of the day working their way lower. All the major averages closed at or very near the bottom of their intraday trading ranges, a sign of weakness. The Nasd averages were the weakest with the COMPQ and the NDX higher by only .08% and .02% respectively. The SPX gained .30% and the NYA .29%. Volume was lower on the New York. Nasd volume was very close. Esignal has it higher by .28%. This small a change can result in different data feeds having different results. This seems to be the case because IBD says it was slightly lower. Leading stocks were weak today with the leaders index declining 1.44% on higher and above average volume. The index finished low in its trading range and back below its short term 9dma. The higher volume showed that there was distribution in quality growth stocks. The action of the market was poor today. The volume issue on the Nasd is important because if volume was higher as Esignal said then this was a stalling day on the Nasd averages. Either way the action of the market had a stalling feel to it as early gains were not held. The Nasd averages came right up to their 200dma’s and couldn’t get through them. The NYA showed the same action. The SPX moved above this now support level, but the weak close was not good. Right now the 200dma’s of the major averages remain critical. The SPX has to remain above this moving average and go higher. The Nasd averages and the NYA have to break above this resistance, hopefully with volume. We should know soon how it will work out. Jerry
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