The market opened strong and rallied to solid gains until some late selling and erased much of the advance. All the major averages closed with good advances, but they all finished near the bottom of their intraday trading ranges. The gains were almost all from the opening gap. The Nasd averages were the strongest due to gains in the big cap tech stocks. The COMPQ and the NDX were higher by .74% and .78% respectively. The SPX rallied .43%. Volume was higher across the board. It gained 30.35% on the Nasd and 1.95% on the New York. The higher volume along with the closes low in the trading range gave today’s action a stalling feel to it. Leading stocks started off strong as well and then sold off from their highs. The leaders index made new intraday highs before closing with a .56% loss. The index closed low in its trading range and volume was lower and well below average. The market looked for most of the session like it would produce significant gains. Late selling came in and much of those gains were lost, but there were still gains at the close. The Nasd averages made new closing and intraday highs while the New York averages are not far from their highs. The low closes along with the higher volume produced some stalling like action and might foretell a little short term weakness. As of this writing the futures were a little lower. The late selling was disappointing, but nothing that happened today really changed the overall picture. We have likely not seen the top of this rally yet. Jerry
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