The market put in another strong session today. After opening higher the major averages spent most of the remainder of the day working their way up. A little late selling saw the major averages close off their absolute highs, but still high in their intraday trading ranges. The New York averages were the leaders today with the SPX gaining 1.36% on the Day. The COMPQ and the NDX were higher by .78% and .49% respectively. The greatest strength was in the small and mid-cap stocks, along with the semiconductors, which gained more than two percent each. Volume was higher across the board. It gained 19.84% on the Nasd and 18.32% on the New York. This higher volume is very positive and shows that large institutional players were buying stocks today. Leading stocks were higher but again lagged the overall market. The leaders index was higher by .10% on the day. It closed high in its trading range and well above its short term moving average support. Volume was a bit lower and below average. There is not much to complain about in today’s action. The market opened strong and rallied most of the day, closing with solid gains. The major averages finished high in their trading ranges on much higher volume, showing buying interest from large institutional players. The Nasd averages lagged a little but they have led for a while and the New York averages seem to be catching up. The strength in small and mid-cap stocks, and the semiconductors is encouraging and there has been considerable accumulation under the surface in the last few days. Leading stocks have underperformed in the last two or three days but it has been on moderate volume and the chart of the leaders index looks great. I suspect they are just taking a rest. There is very little right now standing between the major averages and their old highs. The thing to watch will be what happens when they get there. Right now it looks like they have the momentum to break through to new highs. Jerry
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