The market put in a mixed session today. The major averages finished in about the middle of their intraday trading ranges. After opening moderately lower the major averages were in negative territory most of the day. The Nasd averages were the weakest with the COMPQ and the NDX falling .54% and .83% respectively. The SPX declined .19%. Volume was mixed, slightly higher on the New York and lower on the Nasd. The SPX avoided a distribution day as it declined only .19%. Leading stocks had a solid session with the leader’s index gaining 1.39% on the day. The index closed in the upper half of its trading range on lower and below average volume. The market had a mostly lower session today, although small and mid-cap stocks did well. After yesterday’s strength you would have liked to see some follow on, but we didn’t see that today. The market seems to be consolidating right now. Declines are followed by rallies and rallies are followed by declines. We are well into this rally. You can never tell when an intermediate rally like we have been in will end, but I suspect the bulk of the gains in this rally have already been made. New positions at this point are high risk. The market could well go higher from here before the rally ends, but being careful here is likely a good idea. Jerry
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