The market traded mostly higher yesterday. After early strength the major averages held those gains for the rest of the session. The COMPQ finished with a gain of .46% while the SPX rallied .16%. The greatest strength was in the small cap stocks with the RUT higher by .73%. All the major averages closed at or near their intraday trading highs, a sign of support. Volume was higher across the board and well above average. This was due to the Russell rebalancing that occurred yesterday. Leading stocks did well yesterday with the leaders index gaining 1.07% on higher and above average volume. This was again due to the Russell rebalancing. The index closed high in its trading range and is above all its short term moving averages. Like the Nasd averages it is still struggling to get back to and above its recent highs, but the action yesterday was positive. The New York averages are holding at or near their highs and the Nasd averages appear to be working their way back to these levels. It’s important for the tech stocks to recover the losses they had two weeks ago to really get the rally going again. The small and mid-cap stocks appear to be bouncing nicely off their 50dma’s and seeing them return to their highs would be encouraging. The market is generally acting well, but I would like to see the Nasd averages, along with the SOX, RUT, and MID fully recover and start moving higher to really get over the reversal of two weeks ago. Jerry
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