There was no update yesterday as my ISP was down. The market traded in a pretty tight range today and closed with small losses. The Nasd averages were the weakest with the COMPQ and the NDX falling .16% and .19% respectively. The SPX fell .09%. All the major averages closed low in their intraday trading ranges. Volume was lower across the board, what you want to see as trade sideways or slightly lower. Leading stocks did a little better than the overall market with the leaders index gaining .69% on the session. The index finished in the upper half of its trading range and is close to its old highs. The relative strength line is also close to its highs. The market looked like it was going to roll over last week when it lost the 200dma’s of the major averages. They have since regained this important now support level and the COMPQ, NDX and SPX made new highs for the rally yesterday on higher volume. It looks like the market wants to work its way higher. The leaders index is just fractionally below its all-time high. The fact that quality growth stocks are outperforming the overall market is a sign of strength. The market rarely gets into too much trouble when leading stocks are holding up. The short term direction seems to be higher. Jerry
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