The market rallied today after the recent declines. After bouncing around unchanged for a while the major averages started rallying and continued for most of the remainder of the session. The Nasd averages led the way as big cap tech stocks rebounding. The COMPQ and the NDX were higher by .79% and .89% respectively. The SPX gained .62%. All the major averages closed near their intraday trading highs, a good sign. Volume was the real issue. It was lower across the board, not what you want to see on a rebound from a sell off. Leading stocks were stronger as well with the leaders index gaining 1.82% on the day. The index traded below its 50dma but closed above it. It is still well below its 9dma and 17dma. The index closed high in its trading range. Volume was again the problem. It was much lighter than yesterday. There was finally a bounce today with the major averages finishing high in their trading ranges. The Nasd averages bounced off their 50dma’s while the SPX came back up to this important moving average and closed right on it. Today’s action was not particularly encouraging. The price move was ok, but there was no volume to back it up. Low volume rebounds after declines tend to be failure prone. The overall picture continues to be negative. Jerry
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