The market continued to rally strongly today. After a higher open the major averages mostly held on to the early gains. There was some selling during the day but it was regained by the close. All the major averages finished at the top of their intraday trading ranges, a sign of support. The Nasd averages were a little stronger with the COMPQ and the NDX gaining .81% and .86% respectively. The SPX rallied .67%. Volume was mixed. It was higher by 2.93% on the Nasd and lower by 4.62% on the New York. Leading stocks participated in the rally with the leaders index gaining .79% on the day. This is a new closing and intraday high for the index. It closed in about the middle of its trading range and volume was much higher and well above average. The positive action continued today with all the major averages making new highs on both an intraday and a closing basis. Volume was mixed but still pretty good. New York volume was only slightly below yesterday’s levels. I recently said that the two short term indicators I follow turned down. The Summation Index has turned back up and the A’s minus E’s is very close. The action of quality growth stocks appears to be getting better with strength in the leaders index. It’s relative strength line also made a new high. Another proxy for quality growth stocks, the FFTY, is also starting to show strength after a long consolidation. Right now the market is acting very well and the rally appears strong. We have come a long way in prices, but right now there are few red flags out there. Jerry
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