The market opened lower today and was in negative territory all day. The major averages traded lower early and mostly stayed near the open. There was some late buying that moved the major averages off their lows. All the major averages finished in the upper half of their intraday trading ranges, due to the late buying. This is good, it shows that there was some buying as prices fell. The Nasd averages were the weakest with the COMPQ and NDX lower by .78% and .71% respectively. The SPX lost .48%. Volume was higher across the board. This was an easy comparison due to the holiday last week, but it still counts as distribution on all the major averages. Leading stocks sold off as well with the leaders index off by .83%. The index closed in the upper half of its trading range and above the confluence of its 9 and 17 dma’s. Volume was higher but well below average. The market was weak today overall, but the fact that the major averages and the leaders index all closed in the upper half of their trading ranges is encouraging. There was a distribution day today, but the comparison was to a session between a holiday and a weekend. The fact that the major averages and the leaders index all closed in the upper half of their trading ranges took a little of the sting out of the distribution day. The fact that the market and quality growth stocks closed high in their trading ranges today and Friday on some weakness shows in the charts. The leaders index is holding above its short term moving average support and may be forming a handle in a cup and handle pattern. As I have said before the rally is still on track, but it is not lighting any fires. This is likely a rally where singles and maybe doubles are the most you will get. Jerry
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