The market put in an overall positive session today. After selling off at the open the major averages bottomed out in the first ten minutes of trading and spent the rest of the session rallying. The major averages finished with small gains but all closed at or very near the top of their intraday trading ranges. The Nasd averages were the strongest with the COMPQ and the NDX gaining .22% and .31% respectively. The SPX gained .10%. Volume was lower across the board, which is good when prices make only small gains or decline. Leading stocks were generally strong and outpaced the overall market. The leaders index was higher by 1.73% and closed near the top of its trading range. Volume was lower and well below average. It looked like there would be declines today early on, but the major averages reversed higher and climbed for the rest of the day. The strong close showed support under the market. The NDX became the first of the important major averages to overcome its old highs from late last year and make new highs on both a closing and an intraday basis. This is a positive sign. The market is still hesitating around its old highs and even the new highs in the NDX were small and came on low volume. We need to see all the major averages break into new high ground with real conviction to really improve the picture. Right now it looks like that is likely to happen. There are some negatives out there like the A’s minus E’s continuing lower and the Summation Index going down. The weekly Coppock has also flattened out. Overall I think that the market will resolve the current situation will resolve itself to the upside and we will see higher prices in the near term. Jerry
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