The market pulled back a bit today after yesterday’s rally. The major averages opened a bit higher but quickly sold off and spent the rest of the session in negative territory. The major averages closed low in their trading ranges. The Nasd averages were a little weaker with the COMPQ and the NDX declining .97% and 1.13% respectively. The SPX lost .78%. Volume was lower across the board. It fell 13.09% on the Nasd and 2.56% on the New York. Leading stocks were lower as well with the leaders index declining 1.30% on the day. The index closed just below the midpoint of its trading range and held the short term 9dma support level. Volume was about flat. The market gave back some of yesterday’s gains, but it was only a small part. The volume was lower, and this is good. You want to see lower volume on a pullback after a rally. Leading stocks are still acting well as the leaders index is holding above even its short term moving averages. The SPX still must overcome its 200dma before it can go much further, but the COMPQ and the NDX have little resistance above them in their attempt to make the old highs. Also two short term indicators that I look at, the Summation Index and the A’s minus E’s have both turned up in the last few days. Overall the weight of the evidence still points to higher prices ahead, at least in the short term. Jerry
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