The market closed out the month of August with a negative session. After opening lower the major averages recovered a good chunk of their losses to finish modestly lower. The COMPQ was lower by .19% while the SPX declined .24%. Both closed high in their intraday trading ranges, the best thing you can say about today’s action. Volume was higher across the board and well above average on the New York. This produced another distribution day on the New York averages. The Nasd averages again escaped distribution by a hair. Leading stocks were about flat on the day with the leaders index gaining .02% on the session. It also closed high in it’s trading range and is sitting right on a confluence of it’s 9dma and 17dma. The index has been consolidating for a couple of weeks now and is right on important support. Volume on the index was higher and well above average. This is two days in a row of distribution on the New York averages and the total is now six, a high number. The COMPQ has four distribution days and had barely avoided two in the last couple of days. The rally looks like it is under increasing stress. The charts of the major averages are looking a bit ragged and the COMPQ is starting to look like it is putting in a small rounding high. We need to see positive action out of the major averages and the leaders index or the situation could become more precarious. Jerry
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