The market opened strong today after a cease fire in the trade war and an agreement to resume talks. The major averages gapped higher at the open and had substantial gains. Selling came in and the major averages put in their highs in the first fifteen minutes of trading. There was then a steady decline until some late buying brought the major averages off their lows. All the major averages finished in the lower half of their intraday trading ranges, a sign of weakness. The Nasd averages were the strongest with the COMPQ and the NDX higher by 1.06% and 1.27% respectively. The SPX rallied .77%. Volume was lower across the board due the inflated numbers on Friday caused by the Russell rebalancing. Leading stocks had a good session as well, but closed off their highs. The leaders index was flat with a loss of .18% This was due to a large 16.27% decline in NSSC. Without this the index would have shown a solid gain. I may look for a replacement. The market action today was on the whole a little disappointing. The market started out very strong, but it couldn’t hold the gains. There was consistent selling until the last hour when some buying came in. The major averages still closed in the lower half of their intraday trading ranges, not the sign of a strong market. The rally the began with the follow through on 6/7 is still in effect, but it is not lighting any fires. The gains in the major averages have been modest and few breakouts have produced large gains. The current rally is much weaker than the one that started in early January of this year. The odds seem to favor the market going at least somewhat higher in the near term, but meaningful profits are hard to come by. Jerry
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