The markets opened strong today with the Nasd averages leading the way. It looked like the COMPQ could generate a follow through like day if it held it’s highs. There was weakness later in the session and all the major averages finished near their intraday lows. The COMPQ ended with a gain of .67% and the SPX was higher by .31%. Volume was higher across the board, which is good, but it would have been better if they held their early gains. Leading stocks had a good day as the leaders index outperformed the overall market. The index rallied 1.15% on the day on higher and above average volume. This is a positive sign. The index closed just below the middle of it’s intraday trading range, but it is clearly in new high territory on both a price and a relative strength basis. It is encourging that quality growth stocks are doing better overall than the major averages. The market still appears to be struggling, but it is hard to see a real decline while the leaders index is making new highs. As long as the index is rising above it’s 17dma we will not likely see to much damage being done. Jerry
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