The market put in a somewhat disappointing session today. The major averages opened higher on news of a new stimulus plan, but the gains later faded. The selling lasted mostly into the close and all the major averages finished near their intraday trading lows. The COMPQ and the NDX fell .12% and .58% respectively. The SPX lost .36%. Volume was mixed. It rose 13.30% on the New York and fell 5.83% on the Nasd. The higher volume on the New York combined with the price decline caused a new distribution day on the New York averages. Leading stocks were mixed with the leaders index declining .87% on the day. Some quality growth stocks did alright as can be seen in the 1.64% rise in the FFTY. The index closed in about the middle of its trading range and volume declined and was very light. The market couldn’t hold early gains and sold off. Major averages were lower, but there was continued strength in the small cap, mid cap and semiconductor stocks. The leaders index is showing pretty solid action. After a good run it is consolidating on very light volume. This is the type of action you want to see in leading stocks. There are warning signs all over the place. We saw another example of the IPO mania when POSH took off after it started trading. We have not likely seen the absolute top yet, but it’s a high risk environment. Jerry
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