The market put in a strong rally today. After opening with modest gains the major averages began to rally and finished strong. All the major averages closed at or very near their intraday trading highs, a sign that buying came in as prices rose. The Nasd averages were the strongest as tech stocks rallied better than the overall market. The COMPQ and the NDX gained 1.32% and 1.26% respectively. The SPX was higher by .88%. Volume was a lot higher across the board, a sign that large institutional players were buying stocks today. Leading stocks rallied as well with the leaders index higher by 1.43% and closing high in its trading range. This is a new closing high for the index, but not a new intraday high. Volume was higher and just below average. The market rallied with conviction today. The COMPQ and the SPX made new closing highs today, but were just below intraday levels. The NDX built strongly on yesterday’s new highs. Volume was higher by 20.65% on the New York and 15.22% on the Nasd. This shows that large institutional players were heavy buyers of stocks today. It also represents a follow through like day for the Nasd averages. The fact that the major averages made new highs on very strong volume is the signal that the rally that began the first trading day after Christmas has more to run. How much farther it will go is impossible to know now, but higher prices appear to be ahead. Jerry
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