We finally got a rally today. The major averages opened higher and climbed most of the session. Some late selling saw them close off their highs, but all the major averages closed in the upper half of their intraday trading ranges. The Nasd averages were a little stronger with the COMPQ and the NDX gaining 2.71% and 2.96% respectively. The SPX was higher by 2.01%. Sizable gains. Volume was disappointing. It was lower across the board, declining 18.19% on the New York and 10.03% Nasd. This shows that large institutional players were not jumping in today. Leading stocks were higher as well with the leaders index gaining 5.29% on the day. The index closed near the top of its trading range on lower and about average volume. After three days of selling the market finally gave us a rally day. The price gains were very nice and the major averages closed high in their trading ranges. The COMPQ and the SOX regained their 50dma’s, good action. The real concern today was the volume. When you have a sell off on heavy volume you want to see a strong rebound on strong volume. The volume was not there today, either in the major averages or the leading stocks. Large institutions were not getting back in. We need to see today’s rally continue on strong volume to let us know that this was just a quick and short decline. If not any further upside action might present a good selling opportunity. Jerry
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