The market put in an overall positive session for the first day of the year. The major averages opened with strong declines and it looked like a poor day. They bottomed out in the first ten minutes and spent most of the rest of the day rallying. All the major averages finished near the top of their intraday trading ranges, a sign of support. The Nasd averages were the strongest with the COMPQ and the NDX gaining .46% and .49% respectively. The SPX rallied .13%. Volume was higher across the board. It was an easy comparison as Monday was sort of a holiday between the weekend and New Year’s day. Leading stocks were higher as well with the leaders index gaining .44% on the session. The index closed high in its trading range just below its declining 17dma. Volume was higher but still below average. It looked like it would be a bad session but there was quickly a positive reversal. The major averages climbed to decent gains but gave most of them up and closed with modest gains. It looks like there is some support under the market and it seems like it is trying to stage a rally but there isn’t much power behind it. We will have to see if more buying can come in. The leaders index must clear the 17dma and then the 50dma to improve the picture. The major averages have some distance to go before they can regain their declining 50dma’s. After the close AAPL issued reduced guidance for sales and earnings after a weaker than expected holiday sales season. The market will open sharply lower tomorrow. If it can rebound as it did today that will be encouraging. Jerry
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