The market opened with solid gains, but couldn’t hold most of those gains. The major averages traded around unchanged most f the day before finishing in the lower half of their intraday trading ranges. The COMPQ and the NDX gained .11% and .21% respectively. The SPX lost .20%. Volume was mixed. It fell on the New York and was about unchanged on the Nasd. Leading stocks were mixed. The leaders index gained 1.10% and closed in about the middle of its trading range. Other ETFs of leading growth stocks were lower. The market had an overall disappointing session today. It looked early like it would be a good day, but the gains were lost and the market sold off, closing mixed. This is not what you want to see. The market has been going mostly sideways in the last week or two with the leaders index showing similar action. The charts of the major averages and the leaders index still look ok as they hold even their short term moving averages. On the other hand there are a lot of red flags out there. Breakouts are not doing well as few are producing solid gains. This is a very old rally and has now hit five months in duration. Few intermediate rallies last this long. The market doesn’t seem to want to roll over yet but it is having trouble making further progress. It looks like we are in a topping process that will likely be resolved to the downside. Jerry
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