The market staged a strong rally today, at least on a price basis. The major averages opened higher and rallied for pretty much the rest of the session. All the major averages finished near their intraday trading highs. The strength was pretty much across the board with the COMPQ and the NDX higher by 3.01% and 2.89% respectively. The SPX gained 2.38%. Volume was the issue today. It was lower across the board. It fell 10.01% on the Nasd and 17.50% on the New York. This shows that large institutional players were not to excited by today’s action. Leading stocks were strong as well with the leaders index gaining 6.00% on the day. The index closed high in its trading range on lower and below average volume. The market rallied today on the J&J vaccine being approved and the likelihood that the stimulus bill will be passed intact. The price gains were strong as the Nasd averages and the leaders index regained their respective 50dma’s. The relative strength line of the leaders index also overcame this important moving average. With the new vaccine it is clearly possible to get the entire country vaccinated during the summer, at least those who want it. The prospect is very bullish for the market and would be great for people to get back to mostly normal life. The real concern here is the lighter volume. It shows that intuitional players were not heavy buyers and the market will not get to far without them. It’s a tough market right now and its not the time to be trying for home run. If you can grab a single or two you are doing well. Jerry
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