The market had some intraday volatility but when it was over there was little change. The major averages finished about where they started with the COMPQ higher by .05% and the SPX up by .06%. All the major averages closed near their intraday trading highs, a good sign. Volume was mixed, lower on the Nasd and higher on the New York. Both were above average. Leading stocks were weaker than the overall market with the leaders index falling 2.42% on the day. The index closed low in its trading range on this sizable loss. It cut through the short term 9dma and closed right on the important 17dma. It even touched the 50dma during trading. Volume was higher and well above average, showing distribution in quality growth stocks. The action in the leaders index today was troubling. The big red candle and the break of short term support raise warning signs. The relative strength line of the index has also broken down and is near its 50dma. I said yesterday that the direction of the break from the consolidation patterns that the leaders index and the SPX were in would be telling. The leaders index looks like it is breaking to the downside. The SPX is still in its consolidation pattern and the Nasd averages are action pretty well. Today was not a good session and real damage was done to the leaders index. Jerry
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