The market had a bit of a reversal today. The major averages opened moderately higher on a friendly CPI report, but couldn’t hold the gains. They spent most of the remainder of the session selling off and closed with moderate losses. All the major averages finished low in their intraday trading range. The COMPQ and the NDX fell .50% and .37% respectively. The SPX lost .27%. Volume was mixed, higher on the New York and lower on the NASD. This produced another distribution day on the New York averages. Leading stocks were higher today and outperformed the overall market. The leaders index gained .93% on the day. The index closed in the upper half of its trading range on higher and just below average volume. The market started out with moderate gains after a friendly CPI report, but those gains were lost as the market reversed lower the rest of the day. All the major averages closed weak, but the declines were not to bad. Leading stocks did better today after yesterday’s weakness. The leaders index again held its 17dma. The PPI comes out tomorrow before the close. It is not as important as the CPI, but it can still move markets. The charts of the major averages look good and leading stocks, while pulling back a bit, are still ok. The rally still looks ok. Jerry
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