The market put in another strong rally today. After opening higher the major averages rallied throughout the session . Late strength saw all the major averages close at their intraday trading highs, a sign of strength. The Nasd averages led the way with the COMPQ and the NDX rallying 1.04% and 1.16% respectively. The SPX gained a solid .70%. Volume was higher across the board. It was higher by 5.29% on the Nasd and 5.46% on the New York. This shows that large institutional players were buying stocks today. Leading stocks participated in the gains today. The leaders index was higher by 1.26% on the day. The index closed high in its trading range and made new highs on both a closing and an intraday basis. Volume was a touch lower and below average. The market continued its strong action today in a session in which there were few flaws. All the major averages made new highs on both a closing and an intraday basis. They did this on higher volume, a good confirmation. Quality growth stocks appear to be acting a little better now. The leaders index continued to rally above its short term 9dma and its relative strength line is also making new highs. We are also seeing the FFTY beginning to rally after a consolidation. About the only concern right now is that the market may be getting a bit ahead of itself. There has been a pretty large gain in a short period. The COMPQ is close to a point in its high jump where a consolidation occurs often. The percent of stocks above their 200dma’s is high and the Nasd averages have broken above upper trend lines. None of this means the rally is over, but a pause or short consolidation would not be surprising. The current rally has been going for a long time, but there are no real signs of it being in any trouble. Jerry
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