The market followed a familiar pattern on Friday as it opened strong and had solid gains early. The market couldn’t hold those gains and sold off for the rest of the day. The major averages closed with small gains but finished in the lower half of their intraday trading ranges. The COMPQ was again weakest with a gain of .10% while the SPY was higher by .50%. The COMPQ continued to trade below it’s 50dma and the short term moving averages are coming down to this level. Volume was lower across the board showing little buying among institutional players. Leading stocks were higher on the day but it too was a weak gain. The leaders index was up .35% on the day, but it too closed in the lower half of it’s trading range and finished below it’s opening price, a sign of weakness. The index remained below it’s critical 50dma and volume was much lower and well below average. The recent action of the market is not encouraging and while we could turn around and rally as we have in the recent past, for now it looks like lower prices are ahead. Jerry
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