The market acted very well late last week when I was away. The major averages all broke into new high ground on Thursday, along with the leaders index. It continued on Friday with the major averages moving higher on higher volume. Positive action. The major averages opened little changed and traded around Friday’s close most of the day. There was some late strength and all the major averages closed high in their intraday trading ranges. Volume was mixed. It was higher on the Nasd and lower on the New York. Leading stocks acted well last week with the leaders index breaking above previous highs. Volume on the move higher was light but leading stocks were outperforming. The leaders index sold off today by declining 1.56% on the day. The index closed in the lower half of its trading range on lower and below average volume. The market acted well late last week and into today. The major averages and the leaders index all made new highs, with some higher volume on the major averages. It’s tough to figure out where the market is going. It seems that there are no sustained moves now, just short term moves and then reversals. A week ago it looked like the market was going to break down. That changed quickly when the market reversed higher and the major averages and the leaders index went to new highs. Maybe there is so much liquidity out there right now that the market can’t correct to much. Whatever it is there doesn’t seem to be a real trend in either direction. That is a difficult market to trade. There are a slew of important companies reporting earnings this week and that will likely determine the action of the market in the short term. Jerry
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