The market had a pretty quiet session today with a negative bias. The major averages opened lower and traded in negative territory most of the day. There was some late selling. The Nasd averages closed in the upper half of their intraday trading ranges while the New York averages finished low in their trading ranges. The COMPQ and the NDX fell .27% and .34% respectively. The SPX lost .31%. Volume was also mixed, lower on the New York and higher on the Nasd. This produced a new distribution day on the Nasd averages. Leading stocks were mixed as well. The leaders index fell .87% on the day, due to weakness in a couple of its components. Other ETFs of quality growth stocks rose on the day. The market traded generally lower today in a session that saw little volatility. After solid gains last week following the Fed announcement the market was due to rest. We are in a situation now with a lot of cross currents. The rally is approaching five months old, which is up there for a rally. There are also some leading indicators that are flashing warning signs, while others aren’t there yet. Despite this the market doesn’t seem to want to roll over yet. We may well see higher prices before the rally is over, but the risk levels are elevated right here. Dancing close to the exit is likely a good idea. Jerry
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