The market started off strong today with all the major averages showing solid gains. In a bit of a reversal they sold off and closed well off their highs. The Nasd averages closed in the lower half of their trading ranges while the New York averages finished in about the middle of theirs. The early strength was enough for all the major averages to set new intraday highs. The New York averages closed with reasonable gains while in a reversal of yesterday the COMPQ finished with a decline of .13%. Volume was lower across the board so there was no real selling pressure on the day. Leading stocks continued to consolidate Monday’s gains with the leaders index lower by .63% on very light volume. The index is holding the lows of the gap up day which is positive. Some leaders are acting a little sloppy, but neither the major averages or the leaders index have shown any real damage. There are no meaningful warning signs right now in the price volume action and the distribution count remains low. The employment report before the open tomorrow will set the tone for trading early, but the rally is still acting well and the long side is the place to be. Jerry
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