After opening a little lower the market spent the remainder of the session mostly working its way higher. All the major averages finished high in their intraday trading ranges, a sign of support. The Nasd averages were the strongest with the COMPQ and the NDX gaining .21% and .31% respectively. The SPX was about flat with a decline of only .03%. Volume was lower across the board, a good sign as the market consolidates. It fell 8.70% on the Nasd and 10.26% on the New York. Leading stocks continued to outperform as the leaders index gained .92% on the day. The index closed near the top of its trading range and seems to have moved above its recent consolidation or handle in its chart. Volume was higher but still below average. The market acted pretty well yesterday after the news of a much weaker than expected employment report. After opening lower the major averages rallied modestly for most of the rest of the session. This is encouraging action. The market held up well in the face of disappointing news. That is a positive sign. Quality growth stocks continue to outperform and the leaders index looks like it is breaking out above the handle in the cup and handle pattern it has been developing. The move looks a little weak right now but one strong up day on higher volume would change that picture. Growth stocks appear to be leading again and that is a good sign. The fact that quality growth stocks are outperforming the overall market is an encouraging sign for the market rally. The market usually doesn’t get into trouble when quality growth stocks are outperforming. September can be an iffy month for the market but afterwards we will be getting into a seasonally positive period. Right now it looks like the market wants to head higher. We have had a medical emergency in the family so the updates may be sporadic for the next week or two, but I will try to get most of them out. Jerry
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