The market put in a solid rally today after weakness late last week. The major averages opened higher and rallied for most of the session. All the major averages closed at or near their intraday trading highs, a good sign. The Nasd averages were a little stronger with the COMPQ and the NDX gaining .91% each. The SPX rallied .69%. Volume was again an issue. It was lower by 13.58% on the Nasd and Esignal had it higher by .98% on the New York. The change on the New York was so small that other data feeds could have different numbers, but there was a significant decline on the Nasd. This is likely due to Friday being an expiration day, but it continues the pattern of more forceful declines followed by weaker rallies. Leading stocks rallied as well with the leaders index gaining .49% on the day. Volume was lower and the index closed in about the middle if its trading range. The market rallied today and regained a most of Friday’s decline. The leaders index has been consolidating for the last five trading sessions, but it is holding above its short term 9dma support level. The major averages are still bouncing around in a trading range just below their old highs. It is the kind of market where shooting for singles is the best strategy as few quality growth stocks are producing large gains. We have been in a market that has gone virtually nowhere in over a year. Canslim is a trend following system and it is hard to make much if any progress in a trendless market. Right now the major averages are only a small amount below their highs and the odds favor them making new highs, but I don’t have a lot of conviction in that statement. Right now I am only in index ETFs and even they are producing a bumpy ride. Jerry
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