The market traded in negative territory from the open today. The declines were pretty evenly divided and mild compared to yesterday’s gains. The COMPQ was lower by .30% while the SPX declined by .35%. Both closed near the bottom of their intraday trading ranges. Volume was lower across the board, although it was very close on the New York. This means there was no new distribution today. Leading stocks continue to outperform the overall market with the leaders index gaining .19% on the session. The index made marginal new highs on both an intraday and a closing price. It also is rising nicely above its short term 9dma, this is positive action. Volume on the index was lower than yesterday and well below average. The relative strength line continues to move into new high ground. The action today could be taken either way. The decline was mild compared to yesterday’s gains. The fact that volume was lower is also good. On the other hand there was little follow through to yesterday’s rally. On balance the action was probably somewhat positive. The fact that quality growth stocks continue to outperform the overall market is encouraging. Also the A’s minus E’s indicator that I follow went positive today. The market is still struggling and I think it is a bit too early to give the all clear, but the picture got brighter in the last couple of days. Jerry
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