The market bounced around like a basketball yesterday. After an up opening after a weak employment report the market sold off hard after Putin said Russia would help Syria in any attack. It then staged a very positive reversal and looked like there would be a solid up day. A late sell off erased all those gains and the market closed flat on the day, although all the major averages finished in the upper half of their trading ranges. Volume was lower across the board, so there was little conviction in either direction. Leading stocks were pretty much flat on the day also as the leaders index finished closed up .07% on higher but below average volume. It too closed near the highs of the trading session. Both the leaders index and the major averages remain in their recent trading ranges. The New York averages are bumping up against their 50dma’s and it would be a positive sign if they could break above these important moving averages on volume. The COMPQ is very close to it’s recent high and a break into new high ground would turn the buy switch on. The leaders index is climbing further above it’s important 17dma. The correction so far has been very mild and a lot of leading stocks are acting well and forming bases. A few of the very best leaders like LNKD, FB, and YELP continue to make new highs. The market continues to act like it doesn’t want to go down, but with everything from Syria to the debt limit and the budget hanging over us bad news could send the market lower. For now though both quality stocks and the overall market are holding up pretty well. Jerry
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