The market traded mostly lower today but some late strength allowed the major averages to close off their lows. All the major averages finished in about the middle of their intraday trading ranges. The COMPQ closed with a loss of .25% while the SPX declined by .28%. The SPX closed back below it’s 50dma while the COMPQ bounced off this important moving average and remains above it. Volume was lower across the board so there was no distribution in today’s action. Leading stocks were lower as well with the leaders index falling .38% on lower but still above average volume. This is slightly more than the overall market and the relative strength line of the index declined a bit. The index remains above all it’s short term moving averages and is close to new high ground. The fact that quality growth stocks are outperforming the major averages is a good sign, but it is still difficult to find stocks that are producing worthwhile gains. The market is looking like a roller coaster right now and is having short sharp moves in both directions. It is hard to make any progress in this environment and a large cash position is a good idea. Jerry
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