The market was mostly lower today, although there was some strength in the small and mid-cap stocks. The major averages traded a little higher early but selling came in and they declined into the close. All the major averages closed at or very near their intraday trading lows. The Nasd averages were the weakest today with the COMPQ and the NDX losing .99% and 1.31% respectively. The SPX fell .41%. Volume was mixed. It fell 2.77% on the Nasd and rose 7.45% on the New York. This, combined with the price decline, produced a distribution day on the SPX. Leading stocks were mixed but generally higher. The leaders index gained .68% on the day. The index closed low in its trading range, but held above its short term 9dma support level. Volume was lower and well below average. The chart of the leaders index still looks good. The market showed some weakness today as the growth and tech related stocks that have been the short term leaders sold off. The small and mid-cap stocks were by far the strongest today as the RUT and the MID gained .88% and .49% respectively. We are getting into the thick of earnings season and the results from important companies will effect trading. The overall picture remains encouraging, although there is some weakness under the surface. The A’s minus E’s that I watch shows some distribution under the surface, but it is not at a level to become to concerned about. It can be a tough environment as the leadership seems to go back and forth between growth and tech stocks and the more value and financial areas. Either way it doesn’t look like we have seen the absolute highs yet. Jerry
Reply With Quote