The market opened strong and rallied further to some solid early gains. They didn’t hold and selling came in. All the major averages finished near the bottom of their intraday trading ranges, a negative sign. The Nasd averages were the strongest due to some strength in tech stocks. The COMPQ and the NDX were higher by .16% and .31% respectively. The SPX declined by .01%. Volume was higher across the board, not what you want to see when prices reverse lower. Leading stocks continued to outperform with the leaders index gaining .33% on the day. This represents a new high for the index on both a closing and an intraday basis. Volume was higher but below average and the relative strength line made a new high. The market started out strong but then reversed lower and gave up virtually all the gains. Today’s action had a stalling feel to it on all the major averages and did qualify as a stalling distribution day on the Nasd averages. The action today was disappointing for bullish investors, but it didn’t change the overall picture. The trend still appears to be up and the market rarely gets into real trouble when quality growth stocks are acting well, as they are doing now. Today’s action was a bit concerning, but it still looks like the market wants to go higher. Jerry
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