The market put in a relatively quiet session yesterday. The major averages opened lower and then rallied a bit before selling off again. A pop in the last fifteen minutes of trading saw the major averages close off their lows. All the major averages closed in the upper half of their intraday trading ranges with the New York averages finishing stronger. The COMPQ and the NDX declined .21% and .12% respectively while the SPX fell only .02%. Volume was mixed. It fell 13.73% on the New York and rose 1.13% on the Nasd. This was enough for a new distribution day on the COMPQ, although it was a fairly mild one. Leading stocks were lower as well and a little weaker than the overall market. The leaders index fell .49% on the day. It closed in the upper half of its trading range and volume was much lower and well below average. The market continued to take a rest after its recent advance. The SPX was about unchanged and is sitting just below its all time high made in February. It is not unusual for a stock of an index to hesitate at its old highs before making a run to overcome them. There was a distribution day on the COMPQ, but it was mild and the overall count is still moderate. The leaders index is still struggling a bit to get back above its 17dma now resistance and then hopefully making a run for its old highs. It has been eight trading sessions since the leaders index made its high as the index consolidates. The good news is that there has not been a single day of above average volume during this period. This is positive as it shows little selling pressure during this period. The market continues to consolidate a bit in both the leaders index and the major averages. The question is which way it will break from this consolidation. Right now I would say that the weight of the evidence points to a move higher, but that can change if there is further weak action. Jerry
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