The market staged a nice rally today. The major averages opened strong and after a little weakness rallied into the close. All the major averages finished at or very near their intraday trading highs. The Nasd averages led the way with the COMPQ and the NDX gaining 1.67% and 1.82% respectively. The SPX gained a solid .74%. The greatest strength was in the semiconductor stocks with the SOX higher by 3.23%. Volume was mixed. It was higher by 5.31% on the New York and lower by 1.56% on the Nasd. Leading stocks has a strong session as well with the leaders index gaining 2.72% on the day. The index closed near the top of its trading range and closed back above its short term 9dma and 17dma. Volume was lower and below average. The rally today was good in several respects. The gains were strong and we had higher volume on at least the New York. It would have been better if Nasd volume were also higher, but you can’t always have everything. The big cap tech stocks were strong and several will have earnings reports coming out later this week. Those reports will have a big effect on the market, especially the Nasd. Today’s action was encouraging, but we are not out of the woods yet. It would be good to see the major averages retake their recent highs. The leaders index has also been in a consolidation for the last two weeks. This can be positive as it allows the important moving averages to catch up to the averages and lessen the level of the high jump. The turn down in the weekly Coppock is a warning sign, but today action was positive and if it continues the effect of the Coppock downturn will lessen. Jerry
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