The market put in another wild session today. After an early decline there was a positive reversal and the major averages rallied into the close. The major averages sold off hard after news of the British putting off a vote on a Brexit deal. A little less than two hours into trading the major averages bottomed out and rallied into the close. The Nasd averages were the strongest with the COMPQ and the NDX higher by .74% and 1.05% respectively. The SPX was higher by .18%. All the major averages finished near their intraday trading highs, a good sign. Volume was lower across the board. Leading stocks were higher as well with the leaders index gaining .82% on the day. The index closed in the upper half of the trading range and volume was a little higher and slightly above average. It looked like there would be another very negative session today until the market reversed higher. These types of reversals often lead to higher prices, but there were a lot of negatives in today’s action. The New York averages at their lows undercut the lows of the rally day, thus officially showing the failure of the follow through of a week ago Wednesday. This is now two follow through failures in close succession. The leaders index tagged its 17dma resistance level at its highs but was turned back. The index must clear this important moving average if there is to be any sustained upside movement. The major averages must clear their declining 50dma’s to improve the picture. A reversal like we saw today is good, but we had a similar reversal two trading days ago that hasn’t worked out very well. At this point I don’t see any reason to expect this one to work out any better. This type of high volatility market with reversals in both directions makes it difficult to make any progress for anyone other than very short term traders. The small cap averages made new lows today and are close to official bear market territory. The safest place to be right now is the beach until there is a more clear direction for the market and quality growth stocks. Jerry