The market had some significant losses building early with the COMPQ down almost one percent a little more than half way through the trading session. The major averages then started to rally into the close and eliminated much of those losses. The market still finished lower with the COMPQ down .26% and the SPX falling .29%. All the major averages closed in the upper half of their intraday ranges. Volume was lower across the board so there was no fresh distribution in the day’s action. Low volume on Friday in the summer, particularly August, is common as many market participants leave early for the weekend. Leading stocks were also lower on the day, but closed well off their intraday lows. The leaders index was off by .38% but finished high in it’s intraday range. It tagged it’s important 17dma at it’s high but could not close above it. Volume for the index declined and was well below average. The 17dma is a critical level for the leaders index. The best stocks rise above this moving average and the current leaders index has risen above the 17dma since the middle of May. It has only violated this support level in the last few days. For now the chart of the leaders index is looking better than the charts of all the major averages, and that is positive(although given the ugly charts of the major averages it is not a high bar). We remain in a trendless market where worthwhile gains are hard to come by and landmines abound. Caution is the word of the day. Jerry
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