The market staged a pretty impressive reversal today. The major averages opened lower and it looked like there would be a reversal of yesterday’s gains. With about an hour and a half left in trading they started climbing and rallied into the close. All the major averages finished at their intraday trading highs, an encouraging sign. The New York averages were the strongest with the SPX higher by .86% gained while the COMPQ gained .38%. Volume was lower across the board. Leading stocks gained as well with the leaders index higher by .42% on the day. It closed at the top of its trading range and volume was lower. The action of the market yesterday was not good as trading sessions with such large gains usually occur in bear markets. Today’s reversal probably improved the picture somewhat. In a bear market most follow through days fail and so confirmation is required to get to excited. There are tradable rallies in bear markets and reversals like we saw today can trigger them. The first day we can have a real follow through is Monday. The decline in the weekly Coppock is slowing and next week we will see if it looks like it will turn. If there is a follow through next week that is better confirmed than the two that just failed it could produce some reasonable purchase opportunities. Next week’s action should shed some more light on the short term future of the market. Jerry
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