The market staged a solid rally yesterday. After opening higher the major averages rallied for most of the session. They flattened out toward the close but held their gains. All the major averages finished at their intraday trading highs, a sign of support. The Nasd averages led with the COMPQ and the NDX higher by 1.34% and 1.50% respectively. The SPX was higher by a solid .85%. Volume was lower across the board, the only negative in yesterday’s action. Leading stocks had a good day as well with the leaders index gaining 1.31% on the day and closing near its high of the session. Volume on the index was lower and well below average. Yesterday was the second day in a row of solid price action. The market reacted well to a good jobs report and ignored trade tensions with China. It looks like the Nasd averages, led by the large cap tech stocks and growth stocks in general, are regaining the leadership. The New York averages are still lagging but regained important moving averages yesterday. The only issue right now is the volume. It has been pretty low during these two rally days and it would be encouraging to see it increase in next week’s trading. Never the less the action of the last two days has improved the overall picture quite a bit. The Summation Index turned up and the A’s minus E’s, while it has not turned up, is looking like it is close. Leading stocks are acting better and increased exposure to the market seems warranted. Jerry
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