The market put in another solid rally session today. After a slightly lower open the major averages found a bottom in minutes and rallied for most of the day. They leveled out with a couple of hours to go and held the earlier gains. All the major averages finished at or very near their intraday trading highs, a sign of support. The COMPQ and the NDX were higher by .66% and .45% respectively. The SPX rallied .38%. Volume was lower across the board. It fell 17.91% on the New York and 4.79% on the Nasd. Leading stocks did well and outperformed the overall market. The leaders index gained 1.13% on the day. It made new highs on both a closing and an intraday basis, a positive development. The relative strength line of the leaders index also made a new high. Volume was lower and below average. The market continued its rally today with positive action. There was a little weakness early but the market overcame it and rallied nicely. There were a couple of reasons for the market to sell off and it didn’t. It overlooked the increased tension with China and the riots over the weekend. The fact that it didn’t is encouraging. When the market doesn’t sell off on news that should cause it to decline it usually wants to go higher. The major averages and the leaders index are doing well. Leading stocks are outperforming the overall market and there is rarely a real decline when this is happening. The picture is still positive and the major averages are on track to challenge their old highs. Jerry
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