The market staged a fairly solid rally on Thursday. The major averages opened higher and spent most of the remainder of the session advancing. A little late selling saw them close off their intraday trading highs but still in the upper half of their trading ranges. The COMPQ finished with a gain of 1.64% while the SPX was higher by 1.38%. These are solid gains and they occurred on the last trading day of the month and quarter. Volume was slightly higher across the board, a bit of a surprise before a three day holiday weekend. Leading stocks were stronger as well with the leaders index gaining 2.34% on the session. The index closed high in its trading range, a sign of support. The index held support at its important 50dma, an encouraging sign. Volume on the index was lower but still above average, showing lesser buying pressure than the two previous days selling pressure. Thursday was a good session overall as the market posted solid gains on higher volume. The leaders index bounced off its critical 50dma support level, although it was on lower volume than the two previous down days. The NYA regained its 200dma, but the major averages are stuck right now between their 50dma’s as resistance and their 200dma’s as support. The way they act at these two moving averages will determine the direction of the market. They must recover their 50dma’s if the picture is to improve. There was a strong rally day last Monday that was reversed the next day. Thursday’s action was good, but it will take a lot more positive action to signal the market is out of the woods. Jerry
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