The market rallied back modestly after yesterday’s decline. The major averages opened lower and it looked like we would see a continuation of the previous days weakness. They found a bottom within the first half hour of trading and rallied for most of the remainder of the session. Late buying saw all the major averages finish at their intraday trading highs, a sign of support. The COMPQ and the NDX gained 1.09% and .99% respectively. The SPX gained 1.10%. Volume was lower across the board. It declined 17.10% on the Nasd and 13.93% on the New York. Leading stocks were higher as well with the leaders index higher by 1.30% on the day. The index closed high in its trading range and remained above its short term 9dma. Volume was lower and well below average. The market bounced back after yesterday’s decline and reversed early losses to close with reasonable gains. The fact that volume was lower across the board is a disappointment. You want to see higher volume on a rebound. Overall the picture still looks positive, although there are some yellow flags out there. It would be nice to see some nice rally days on big volume to remove some of the caution signs. Right now the weight of the evidence is still on the side of a continuation of the rally. Jerry
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