The market had a mixed session today but rallied into the close. After a solid rally on Friday the major averages opened a little weaker and then sold off. They found a bottom later in the day and recovered much of the earlier losses. All the major averages finished high in their intraday trading ranges and the Nasd averages made new highs. The Nasd averages were the only ones to finish in positive territory with the COMPQ and the NDX gaining .17% and .40% respectively. The SPX was off by .20%. Volume was higher across the board, as would be expected after the last trading day before a long holiday weekend. It rose 27.11% on the New York and 17.70% on the Nasd. Despite the holiday distortions in the volume figures this is a distribution day on the SPX. Leading stocks were lower today with the leaders index falling 1.58% on the day. The index finished high in its trading range but closed below its 17dma support level. Volume was higher but below average. The market had a solid rally session on Friday and kind of held on to most of it today. The Nasd averages continue to lead as growth and tech stocks remain in favor. All the Nasd averages made new highs today, as well as Friday. Today’s new highs came on higher volume. The other averages struggled today. The small and mid-cap stocks were hit the hardest as the RUT and the MID fell 1.36% and 1.10% respectively. The market is still in a rally mode, but it is hardly a strong rally. There are opportunities out there, but this is a market of singles not home runs. I am looking at two items that I keep an eye on as an early warning. They are the Summation Index and the A’s minus E’s. If both roll over I will probably head for the exits. Jerry
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