The market mostly took a break today after its recent advance. The major averages opened higher but made their highs right after the open. They spent the rest of the session working their way lower and closed low in their intraday trading ranges, but higher on the day. All the major averages, except the NDX closed at new highs. The gains were small except for the semiconductors as the SOX was up 1.25%. The Nasd averages were mixed with the COMPQ higher by .07% and the NDX declining .14%. The SPX gained .08%. Volume was lower across the board. It fell 2.93% on the New York and 1.35% on the Nasd. Leading stocks had a solid session with the leaders index gaining 1.02% on the day. The index closed in about the middle of its trading range on lower and below average volume. The index made a new high on both a closing and an intraday basis and its relative strength line also made a new high. The market acted in an overall positive fashion today. The major averages mostly took a break after recent strong gains, and this is to be expected. The fact that they still closed in positive territory is a good sign. Also volume was lower as the major averages rested and that is encouraging as large institutional player were not selling stocks heavily today. The fact that quality growth stocks are outperforming is a good sign as the market rarely gets into real trouble when leading stocks are outperforming the overall market. I would not be surprised to see a mild pullback or consolidation here, but the overall picture remains positive. Jerry
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