The market put in a mixed session today. The major averages opened lower and stayed in negative territory pretty much the entire session. They found a bottom not long after the open and worked their way higher most of the remainder od the day. All the major averages finished high in their intraday trading ranges as there was buying later in the session. The Nasd averages were a little weaker with the COMPQ and the NDX falling .72% and .45% respectively. The SPX declined .44%. Volume was mixed. It was higher by 1.59% on the New York and fell by 10.93% on the Nasd. This combined with the price declines produced a distribution day on the New York averages, although the damage was mitigated by the stronger close. Leading stocks had a tough session with the leaders index falling 2.90% on the day. The index closed high in its trading range on lower and very light volume. The index broke its important 17dma support level. The market looked a lot like yesterday in that early losses were largely regained. It didn’t look as strong as yesterday’s action but little real damage was done to the charts of the major averages. The same can’t be said for quality growth stocks. The leaders index broke important support in its 17dma. In fact it traded the entire session below this moving average. The relative strength line of the leaders index is also looking weak as it has declined for over a week and is now approaching its 50dma. If it breaks this moving average it would be a big red flag. Overall the picture still looks encouraging, but there are some negatives out there that must be watched. If leading stocks weaken to much the market may well get into trouble. Jerry
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