The market opened a little lower today and then tried to rally. It didn’t get to far as selling soon came in. All the major averages finished in the lower half of their intraday trading ranges, generally considered a sign of weakness. The COMPQ was lower by .13% while the SPX declined .17%, both mild losses. Volume was higher across the board, but there was no new distribution due to the small declines in the major averages. Leading stocks on balance showed modest gains with the leaders index higher by .17%. This is new high ground on both a closing and an intraday basis. The index closed about in the middle of its trading range while volume was lower and below average. The markets struggled today. The Nasd averages had some gains but could not hold them. Fortunately the losses were very small so there was no distribution on the session, but the major averages are having trouble breaking through their old highs and their ability to do this will tell us a lot about the near term direction of the market. Quality growth stocks are acting pretty well as can be seen in the recent outperformance of the leaders index. The only negative in this is the fact that the gains of the last few days were on lower volume. If this continues the chart will take on a wedging look. What we need right now is for the major averages to break into new high ground with conviction and for the leaders index to continue to advance on higher volume. I will be away for a few days. The updates will resume the middle of next week. Jerry
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