The market had an up session today. After opening higher the major averages worked their way lower for much of the session before some late buying came in. The Nasd averages went negative for a short time. The Nasd averages closed in about the middle of its intraday trading range while the New York averages closed in the upper half of their trading ranges. The greatest strength was in the New York averages with the SPX up by 1.23% while the COMPQ and the NDX gained .42% and .29% respectively. Volume was disappointing. It was lower across the board, dropping 15.29% on the New York and 11.31% on the Nasd. You want to see higher volume when prices advance. Leading stocks rallied as well with the leaders index gaining 1.15% on the day. The index closed in about the middle of its trading range and is sitting right on its 50dma. Volume was much lower and well below average. The market rallied today and the New York averages posted some nice gains. The Nasd averages lagged. Most or all of the gains game in opening gaps. The real problem came with the volume. It was significantly lower on both exchanges. This continues a pattern of higher volume declines followed by lower volume advances. This is not a volume signature that is favorable for the market. The major averages are still below their important 50 day moving averages. The leaders index is sitting right on this important still support level. The major averages and the leaders index must move above this moving average, on volume to improve the picture at all. With the election tomorrow, preserving capital is the order of the day. Jerry
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