The market put in a solid up session yesterday. After opening higher the major averages sold off and rallied for most of the day before some late strength came in at the end. All the major averages closed at or near the top of their intraday trading ranges, a good sign. The New York averages were a little stronger with the SPX gaining .58%. The COMPQ and the NDX rallied .48% and .18% respectively. Volume was much higher and above average, mostly due to the Russel rebalancing, but it still counts as higher volume on an up day. Leading stocks were mixed but mostly higher. The leaders index was pretty flat with a gain of .03% on the day. Much of this was due to an 8.05% drop in ARWR. Volume was much higher and also above average. This was again mostly due to the Russell rebalancing. The session was overall a positive one with the major averages putting in some solid gains. We have to see how the meeting with China at the G20 goes and the market was mostly biding time last week waiting for the results. The action of the market since the follow through on 6/7 have been somewhat mild. The major averages are higher but are not lighting any fires. The same is true of individual stocks. There have been breakouts, but few are producing really meaningful gains. The SPX made it into new high ground, but the Nasd averages have not. It is important that the Nasd averages make it into new high ground or it is looking like a head and shoulders pattern in the COMPQ and the NDX would be in place. This would be very negative. We will have to see how the markets react next week to the meetings in Japan, but right now the rally is still in effect. Jerry
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