The market showed some early strength today in a continuation of yesterday’s positive action. The major averages opened higher but couldn’t hold the gains. All the major averages sold off into the close and finished low in their intraday trading ranges. The Nasd averages were the strongest and finished with small gains. The COMPQ and the NDX were higher by .27% and .19%. The SPX declined .20%. Volume cooperated today by declining across the board. It fell 6.75% on the Nasd and 4.55% on the New York. This was good as it avoided any fresh distribution days on any of the major averages. Leading stocks were higher today, but also finished off their highs. The leaders index was higher by .86% on the day. The index closed in about the middle of its trading range on lower and much below average volume. The index tried but couldn’t get above its 17dma. The market looked early like there would be solid gains, but selling came in and prices fell. The fact that volume was lower across the board is good as it showed that large institutional players were not heavy sellers today, but the late declines took away from that. It looks like the early leadership of the tech stocks and quality growth stocks may be reasserting itself. This would be positive. There is some weakening of the accumulation/distribution numbers under the surface and this must be watched, but it is too soon to worry to much about this. The SPX is struggling a bit at its old high ,but this is not unusual. In order to improve the picture the major averages should break into new high ground with volume and the leaders index must break above its 17dma and go on to new high ground. Jerry
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