The market started off strong today, but then reversed lower. The major averages were mixed with the Nasd averages finishing stronger. All the major averages finished near their intraday trading lows. The COMPQ and the NDX closed higher by .63% and .62% respectively. The SPX declined .08%. Volume was mixed. It fell 2.63% on the Nasd and gained 7.81% on the New York. Leading stocks were moderately higher as well. Since there was a follow through on Friday I created a new leaders index over the weekend. It contains 21 stocks in 16 different industry groups. I have included a text file with the contents of the new index. The index broke out of a flat base on Friday and gained 1.71% today. Volume was higher and above average. The market started out strong today but reversed lower and lost all the gains on the New York averages and most of the Nasd gains. The COMPQ remains below its 50dma while the SPX broke above this important moving average today only to fall back below it by the close. This is negative. The new rally attempt suffered a reversal on the day after the follow through. It barely avoided a distribution day. This action puts the follow through in question and reinforces the fact that it was poorly confirmed. The CPI report coming out on Thursday is the next big report and it will effect the market if it is different from expectations. Earnings season is also about to get started and consensus expectations are likely to come down. There may well be some limited upside action but I don’t think it will amount to much. Jerry
Reply With Quote