The action of the market today didn’t do much to improve the picture. The major averages opened with decent gains, especially the Nasd averages, but they couldn’t hold on to them. All the major averages toped out quickly and spent the rest of the session working their way lower. They all closed near the bottom of their intraday trading ranges. The SPX was higher by .12% while strength in big cap tech stocks saw the NDX gain .17%. The COMPQ fell .22%. Volume was close to yesterday’s levels and was mixed. It was lower by 2.98% on the Nasd and higher by .11% on the New York. Leading stocks took a hit as well with the leaders index falling 1.12% on the day. This was actually less than other growth stock instruments. The index closed in the lower half of its trading range and is back below its 17dma. Volume was higher and the relative strength line of the leaders index is close to breaking below its 50dma. The market could not hold onto early gains today and again closed weak. This is not encouraging. After yesterday’s negative reversal you would like to see a strong rebound if the market is to move higher. We did not see that today. The intraday highs occurred within the first fifteen minutes of trading and there was little positive action after that. The evidence is shifting to a negative picture overall for the market. It is starting to look like there has been at least a short term high put in. Jerry
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