The market put in an impressive performance today. After opening higher the major averages spent the rest of the session rallying until a little selling in the last few minutes saw them close just below their highs. The COMPQ led the way with a gain of 1.74% while the NDX rallied 2.12%. The SPX was up a solid 1.07%. All the major averages finished the session near their intraday trading highs, a sign of support. Volume was higher across the board, just what you want to see on a rally day. Leading stocks had their best session since the follow through. The leaders index gained 1.70% and closed near the highs of the day. This is a new closing high for the index, but not a new intraday high. Volume on the index was higher than yesterday. Today’s action was just the thing we were looking for. Good earnings reports, especially from NFLX and GS, ignited a rally early that held throughout the day. All the major averages regained their 50 day moving averages and they did so on higher volume, showing that large institutional players were buying stocks today. In addition quality growth stocks had strong advances almost across the board. The picture brightened considerably today and the action of the market since the follow through has been good. We should see higher prices ahead, at least in the short term. Jerry
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