The market had another overall flat day on Friday as the major averages traded in a tight range and finished little changed. Volume was mixed, higher on the New York and lower on the Nasd. The New york averages finished in about the middle of their trading ranges and the COMPQ finished in the lower half. Leading stocks had a tougher day as the leaders index fell .97% and finished near the lows of the day. Volume was lower than the previous day but still above average. We have now had three down days in a row on higher than average volume. The index is now living below the important 17dma and it’s RS line is looking weak. The major averages are holding up, but the leadership is thinning. The rally is still intact, but the fact that there are cracks showing up in quality stocks and the major averages are leading those quality stocks is cause for concern. Jerry
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