The market started out higher on Friday but quickly reversed and sold off for the rest of the day. All the major averages closed the session near their lows with losses in the area of about .6%. The NYA is back below it’s 50dma and the others are near it. Volume was lower across the board, which is not unusual on a Friday in the summer. Leading stocks declined a bit more than the overall market with the leaders index falling .41% on lower and well below average volume. There was no distribution on the decline because of the lower volume, but this is not the kind of action you want to see the day after a follow through. The downtrend lines on the major averages and the leaders index remain intact and it would be a big positive if they could be broken to the up side. That combined with the fact that this follow through was poorly confirmed is a reason for caution until we see both the market and leading stocks move higher with more conviction. I hope everyone has a happy father’s day. Jerry
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