The market tried to stage a rebound rally today, but it didn’t hold. After opening strong the major averages rallied to some solid gains, but before the close selling came in and most of the gains were lost. The Nasd averages showed some more strength with the COMPQ and the NDX gaining .92% and .75% respectively. The SPX was higher by .30%. All the major averages finished at or very near their intraday trading lows as all the gains came from the opening pop. This shows that there was selling coming in as prices rose. Volume was lower across the board. Light volume was to be expected on the day before Thanksgiving. Leading stocks rallied as many tech stocks rebounded after recent losses. The leaders index was higher by 1.49%. The index finished in about the middle of its trading range and volume was low. The market tried to rally today after the hard declines earlier in the week, but it was a pretty unimpressive effort. There were nice early gains but they were mostly lost. The major averages gapped higher at the open and those gains were the only ones left at the close. Strong opens and weak closes is a sign of a weak market. You would expect to see a rebound after a strong decline and watching the quality of that bounce is important. That bounce was pretty weak today. The closes low in the trading ranges of the major averages and the low volume on the day are further signs of a lack of strength. You would expect low volume on a pre-holiday trading session, but it still counts. There was nothing in today’s action that would serve to improve the picture. There will be a half session on Friday and few will be there so there will be no update on Friday. I hope everyone has a good Thanksgiving weekend. Jerry
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