The market put in a bit of a mixed performance today. The major averages opened higher but then diverged a bit. The Nasd averages quickly sold off and lost early gains. The SPX held its early gains until late in the session. Then buying came in near the close and the major averages rallied into the close. The New York averages were the strongest with the SPX higher by 1.00%. The COMPQ and the NDX gained .60% and .61% respectively. The New York averages finished near the top of its intraday trading range while the Nasd averages closed in about the middle of their trading ranges. Volume was slightly higher across the board. It was higher by 2.80% on the New York and 1.96% on the Nasd. Leading stocks again lagged the overall market with the leaders index falling .86% on the session. The index finished in the lower half of its trading range and volume was lower and well below average. The market continued higher with the COMPQ and the SPX making new highs on both a closing and an intraday basis. The SPX has now clearly broken above its recent consolidation. The higher volume across the board is also a good sign as the major averages made new highs on higher volume, which is very positive. There are a couple of warning signs out there though. The underperformance of quality growth stocks continues. You want to see them lead the market. This period of lagging the overall market is getting a little long. Some quality growth stocks are forming nice bases and this may have something to do with it, but hopefully this will not continue much longer. The COMPQ is also getting a little extended as it is now 24.19% above its 50dma. This is high and could lead to some weakness or consolidation in the short term. The weight of the evidence still favors higher prices ahead, but these two items are cause for concern. Jerry
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