The market was lower most of the session, but held on to most of yesterday’s gains. After opening lower the major averages spent most of the day in negative territory before some late buying came in. The Nasd averages were the weakest with the COMPQ and the NDX lower by .53% and .62% respectively. The SPX was off by .25%. The Nasd averages closed just below the midpoint of their intraday trading ranges while the SPX finished just above its midpoint. Volume was lower across the board, just what you want to see after a large rally. Leading stocks mirrored the overall market, showing a small loss but holding most of yesterday’s gains. The leaders index was off by only .15%, pretty small compared to yesterday’s 10% plus gain. The index closed just below the middle of its trading range, like the Nasd averages. Volume was much lower but still well above average. The market held on pretty well today. It was not able to build on the previous session’s gains, but mostly held on to them. Volume was lower so large institutional players were not selling the stocks they bought yesterday. The %E’s on the follow through day was 18.5%, above the level required to confirm the follow through. So far there is no Eureka signal and the weekly Coppock is still headed lower. There are individual stocks that are acting well. An interesting play now may be the new ETF comprised of IBD breakout stocks, the BOUT. After a weak start it looks like it is putting in a bottom and has had two pocket pivots in the last two days. Right now the rally attempt looks like it is on track, although it is not well confirmed. If this is a bear market then it has a good chance of failing. There are attractive stocks to buy, but some degree of caution is warranted. Partial positions may be a good idea until the rally does more to prove itself. Jerry
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