The market was weak early and was showing some solid losses. A little more than two hours into trading the major averages started to rally and were higher the rest of the session. The major averages closed high in their intraday trading ranges, but never got back to positive territory. The COMPQ closed with a loss of .21% while the SPX fell only .18%. The small and mid cap stocks performed worse as the RUT and the MID had larger declines and both finished near their intraday lows. Volume was lower across the board, so large institutional players were not heavy sellers. There was no distribution today. Leading stocks performed better than the overall market as the leaders index showed a gain of .15% on the day. The index closed in the lower half of it’s intraday range and held at it’s 50dma. The index has now for a second day traded between it’s 50dma on the bottom and a confluence of it’s 9dma and 17dma on the top. There moving averages are now providing support and resistance. The direction that the leaders index breaks will tell us a lot about the direction of leading stocks and the major averages. Jerry
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