The market opened strong today, but we then had something of a negative reversal and the major averages lost almost all the early gains. There were solid gains early but about an hour into trading the major averages topped out and spent the remainder of the session selling off. There were small gains at the close with the COMPQ and the NDX gaining .11% and .01% respectively. The SPX was higher by .17%. All the major averages closed at or very near their intraday trading lows, a negative sign. Volume was higher across the board. It gained 15.08% on the New York and 17.24% on the Nasd. The higher volume combined with the weak closes was enough to generate stalling days on all the major averages. Leading stocks finally outperformed the overall market today. The leaders index gained .87% today and finished in about the middle of its trading range. Volume was higher and well above average. It was a mixed session today. The market looked like it was going to put in another strong session today, but started selling off and finished about unchanged. This type of reversal on heavy volume is a negative. The fact that quality growth stocks did better today is a good development. Market internals were also solid with more advancing issues and volume today. The Summation Index turned up today and the A’s minus E’s turned up yesterday. This is positive. It was a very mixed session today. The price reversal we saw is worrisome, but the solid internals are encouraging. Leading stocks outperformed the overall market and if this were to continue it would be very positive. There were a lot of crosscurrents today so the action in the next few days will tell us a lot. Jerry
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