The market mostly took a rest today, but the declines were small. The major averages opened a bit lower and traded sideways most of the session. Late selling came in and all the major averages finished near the bottom of their intraday trading ranges. The COMPQ and the NDX fell .41% and .42% respectively. The SPX lost .12%. Volume was higher across the board. This combined with the price decline produced a new distribution day on the Nasd averages. The decline in the SPX was to small to qualify as distribution. Leading stocks outperformed the overall market with the leaders index gaining .28% on the day. The index closed in the lower half of its trading range on higher and about average volume. After strong gains last week the market took a bit of a break today with the major averages showing relatively minor declines. The fact that the market mostly held recent gains is encouraging. The fact that quality growth stocks are still acting well and are outperforming the overall market is a good sign. There are several potential market moving news items this week, including Powell speaking to Congress and the employment report on Friday. Right now the market is showing few signs of any real trouble and we have not likely seen the top of this rally. Jerry
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