The market took a bit of a rest today, but there was a mildly positive tone to the day’s action. The major averages opened higher but quickly lost the gains and traded about unchanged. The Nasd averages were again the strongest with the COMPQ and the NDX gaining .17% and .30% respectively. The SPX was flat with a gain of only .02%. There was late buying and all the major averages finished trading very near their intraday trading highs. This shows support. Volume was lower across the board. Leading stocks were stronger than the overall market. The leaders index rallied .73% and closed in the upper half of its trading range. Volume was a bit lower and below average. It was generally a quiet session today, but there were modest gains. This was still enough to produce new highs on all the major averages. The chart of the leaders index shows a bit of a lop sided cup and handle pattern with last four days of trading forming a handle. One strong rally day could break it out. The lower volume while the market is taking a rest is positive also. It shows that market participants are not taking profits as prices rise. The market is acting well and looks like it wants to go higher. Jerry
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