After some early strength the market sold off and then spent the rest of the session trading in a tight range. The major averages closed mixed with the COMPQ rising .24% while the SPX was about flat with a .03% gain. Both finished high in their intraday trading ranges, a sign of support. Volume was higher across the board and above average on the Nasd. Leading stocks were higher as well with the leaders index gaining .55% on the day. That was enough for a new high on both a closing and an intraday basis. The relative strength line of the index also set a new high. The major averages are consolidating right now after a nice rally, and that is constructive. The fact that quality growth stocks are leading the overall market is encouraging. There are a couple of things worth keeping an eye on. The A’s minus E’s turned down today and the McClellan Summation index has stalled out. These are early warning signs and could easily turn back up. The market is still in good shape and appears to want to go higher, but may be a little extended. Jerry
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