The market took a break today after last week’s strong action. The major averages opened a bit higher and then bounced around unchanged most of the day. The major averages finished with small gains in about the middle of their trading ranges. The COMPQ gained only .06% while the NDX fell only .05%. The SPX was higher by .10%. Volume was mixed, higher on the NASD and lower on the NEW York. Leading stocks were generally higher on the day. The leader’s index gained .19% on the day, although ETFs of leading growth stocks did better. The index closed in the upper half of its trading range on higher but below average volume. The market took a well deserved rest today after last week’s really strong action. The major averages were getting a little extended from their important moving averages. Right now some sort of a consolidation of last week’s gains would be expected and actually healthy. At this point I don’t see any serious problems with the rally. We are in a seasonally very positive time and barring any unexpected events the rally should continue. Jerry
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