The market rallied again today, but again the gains were uneven. All the major averages opened higher and after a bout of selling rallied mostly into the close. All the major averages finished near the top of their intraday trading ranges, a good sign. The strength was again in the Nasd averages with the COMPQ and the NDX higher by .73% and .98% respectively. The SPX was higher by .23%. Volume was higher across the board. It gained 1.44% on the Nasd and 8.83% on the New York. This is encouraging as the major averages all made new highs on higher volume, just what you want to see. Leading stocks were higher as well with the leaders index gaining .54% on the session. The index closed high in its trading range and volume was higher but below average. The market put in another positive session today. After taking a rest the original leadership seems to be reasserting itself. The Nasd averages led the way and produced solid gains. Yesterday I said that although the Nasd averages made new highs it was not decisive as they didn’t break clearly above their recent consolidations. They did that today on higher volume, very encouraging. The SPX made a new high today on both a closing and an intraday basis. Leading stocks are moving higher and the relative strength line of the leaders index is headed up again. The index must make a run for its old high and hopefully overcome it. The picture looks pretty positive now and there appears to be solid leadership. Jerry
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