The market opened lower today as Europe sold off. The major averages spent the rest of the day rallying back and closed with very minor losses, except the COMPQ which had a small gain All the major averages closed at the highs of the day. Volume was mixed, about flat on the Nasd and higher on the NYSE. The losses on the New York averages were small enough that there was no distribution. Leading stocks did better than the overall market as the leaders index rose .35% and set a new high for this index on both a price and RS basis. Volume mirrored the major averages and has been low for almost two weeks. The are some causes for concern, like the low recent volume, the fairly elevated level of distribution days and the fact that the weekly Coppock is close to giving a sell signal. Overall the major averages and quality stocks have been acting well, and this is the most important thing. We will have to see which way the major averages break from this recent consolidation, but they don’t seem to want to sell off. Jerry
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