The market opened with some gains and rallied early. After they achieved some solid gains the major averages topped out and sold off for the rest of the session. All the major averages finished at their intraday trading lows, a sign of weakness. The major averages closed about unchanged with the COMPQ and the NDX higher by .07% and .17% respectively. The SPX was flat. Volume was lower across the board. Off by 4.90% on the New York and 10.10% on the Nasd. Leading stocks did better than the overall market with the leaders index gaining 1.66% on the day. It closed in about the middle of its trading range and volume, while lower than yesterday, was well above average. The market continues to trade between the two levels I recently spoke about. The major averages continue to trade between the 50dma on their downside and their old highs on the upside. The leaders index continues to trade between its 17dma and its 50dma. As can be seen in the chart the rising 50dma and the declining 17dma are very close to each other. The index will cross one of them soon. We will have to wait and see which way the major averages and the leaders index break. Jerry
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