The market put in another overall encouraging session yesterday. The market opened lower and it again looked like there would be some corrective action after the recent advance. The major averages bottomed out after the first half hour and rallied into the close. All the major averages finished at their intraday trading highs, showing that there was consistent buying support. The Nasd averages were weakest yesterday with the COMPQ and the NDX lower by .21% and .30$ respectively. The SPX was flat with a loss of only .01%. Volume was lower across the board so there was no distribution on the Nasd averages. Leading stocks had a slightly positive session with the leaders index higher by .16%. The index closed a bit below the midpoint of its trading range. Volume was lower and slightly below average. With the advance that began the session after Christmas the market is due for a rest to consolidate its gains. There have been two trading sessions in a row now where the market opened lower and found buying support to close strong. This is the signature of a market that wants to go higher. The latest follow through was a week ago Friday. At that time the weekly Coppock was curling and looked like it would signal. Last Monday it turned up and clearly looked like there would be a signal. That was confirmed yesterday, making this a pretty well confirmed follow through. There are still not a great number of attractive stocks, but some have broken out and there are others that are well set up. With that said ETF’s are probably a good way to participate. The market looks like it wants to go higher in the short term and participating, although maybe not too aggressively, is the right course. Jerry
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