Leaders Index 12-9

The market rebounded Friday, basically reversing Thursday's losses on yet another agreement to agree at the EU summit. We came close to a FTD but did not get one because volume was lighter than the day before. The major averages rose between 1.6% and 1.9%, about what they lost on Thursday. Leading stocks did better than the overall markets the leaders index was up 2.67% on much higher volume. The bulk of this was due to DMND that had a huge up move on very heavy volume. Without it the index was up about in line with the major averages and volume was little changed. I believe that all stocks in the IBD 50 were up. The market continues to rally and sell off on news from Europe. Will all those countries really surrender their sovereignty to Germany and the ECB when the time really comes, I don't think so. There is still no agreement on the most important thing, that is where are the trillions of Euros needed to pay for it going to come from. The major averages have still been unable to clear their 200dma's and the gyrations caused by news headlines makes this a very difficult environment. Jerry