The market put in a slightly positive session overall today. The Nasd averages led by a little bit with the COMPQ and the NDX higher by .27% and .23% respectively. The SPX gained .19%. The Nasd averages finished in the upper half of their intraday trading ranges while the New York averages closed low in their ranges. Volume was lower across the board. Leading stocks had a moderately positive session as well with the leaders index higher by .60% . The index again bounced off its 17dma support level and held it. After closing high in its trading range the index is sitting right on its 9dma still resistance level. A break above this short term moving average would be very positive. Volume on the index was higher than Friday, a good sign as prices advance. In my last update I said that the market needed to generate some positive action after last week’s negative action. It did that to a moderate degree today, although the gains were limited. The Nasd averages outperformed which is what we want to see, although volume on the major averages was lower. The leading stocks did better on higher volume and we have to see them rise above the 9dma and then move into new high ground. Hopefully this will be accompanied by higher volume. Today’s action improved the picture a bit, but we must see more of it to give us conviction that the market and leading stocks will head higher. Jerry
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