The market staged another strong session today with the major averages opening higher and rallying throughout the day. All the major averages finished at their intraday trading highs, a sign of support. The COMPQ was higher by 1.58% while the SPX rallied 1.21%. Volume was lower across the board. Leading stocks were strong as well with the leaders index gaining 1.68%. The index closed near its highs of the session as quality growth stocks saw good action. Volume was lower than yesterday but still above average. The leaders index has now had four rally days in a row on slightly lower volume each day. The fact that all the day’s volume was above average may mitigate this, but a couple of good days on higher volume would be nice. The market followed yesterday’s follow through by building nicely on its gains. All the major averages are now above their important 50dma’s and those moving averages are now support. It looks like the next hurdle for the market if it is to continue its rally is to make a run at the old highs. They are not too far away and how the market acts if it makes those levels will tell us if this recent rally really has legs. Jerry
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