The market took a break after recent strength in a pretty orderly pullback. The major averages opened a bit higher and bounced around the rest of the day before closing low in their intraday trading ranges. The COMPQ and the NDX declined .33% and .24% respectively. The SPX lost .20%. Volume was lower across the board so there was no distribution today. Leading stocks were weaker as well with the leaders index falling .77% on the session. The index closed high in its trading range on lower and below average volume. The market took a break today after a solid recent advance. The declines were moderate in both the major averages and the leaders index. The market needs to take a rest after rallying and it did so today. It was pretty constructive action as the relatively small declines came on lower volume all around. You want to see lower volume on the declines. The market is acting pretty well right now. The fact that there was no distribution is also good. Right now the major averages are just above their respective 50dma’s. They may pullback to this support level but if they do it must hold. A break would be very negative. There is some important employment news coming out tomorrow and Powell will speak on Friday at Jackson Hole. They could move the market, but right now the rally appears to be on track. Jerry
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