The market put in a mixed session today after yesterday’s rally. The major averages opened higher, but couldn’t hold the gains. They topped out early and sold off for most of the remainder of the session. Late selling saw all the major averages finish near their intraday trading lows. The Nasd averages were the weakest with the COMPQ and the NDX losing .81% and 1.09% respectively. This is a small portion of yesterday’s gains. The SPX was higher by .17%. Volume was a lot higher across the board. It increased 13.85% on the New York and 25.12% on the Nasd. This shows heavy selling on the Nasd and is a distribution day. The SPX closed up but the action had a stalling feel. Leading stocks were lower on the day with the leaders index declining .67%. The index closed low in its trading range but held above all its short term support levels. It made a new intraday high early on but didn’t hold it. Volume was lower and below average. The market was a little weak late in the session, but limited damage was done. The Nasd averages were the weakest, but after yesterday’s large gains it is still pretty impressive to see them hold such a large portion of those gains. The charts of both the major averages and the leaders index look good, and this is positive for the rally. There has been some action under the surface that looks positive. There has been a large increase in the stocks under accumulation in the last few days and market internals were strong today. The higher volume today was a concern, but the distribution count is still modest. Overall the picture still looks positive. Jerry
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