The market opened lower and developed a decent loss within the first couple of hours. After bouncing around a late rally brought the major averages back to about unchanged on the session. The COMPQ finished with a loss of .04% while the SPY declined by .05%. They both closed at or near their intraday highs and volume was lower across the board. This showed that there was little selling pressure while the market declined, but also little buying pressure during the late rally. Leading stocks were not as lucky as the overall market. The leaders index declined 1.73% on higher but slightly below average volume. The index closed in the lower half of it’s trading range and broke below it’s 9dma. The index tagged it’s 17dma for the second time but closed well above it. We now have three sizable red candles in a row, which is a worrisome sign. Neither the major averages or the leaders index have suffered and serious damage yet, but the punch that drove them both to new highs doesn’t appear to be there right now. The market is entitled to a rest after it’s recent advance, but you never know when what seems like a slight correction or consolidation will become more serious. A higher degree of caution is warranted now. Jerry
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