It was a pretty confusing day overall today. The market opened stronger and all the major averages were showing solid gains. There was a bit of a divergence as the New York averages held up better than the Nasd averages. The Nasd averages showed big gains early and lost them all by the close. The COMPQ and the NDX finished lower by .04% and .33% respectively. Both closed near the bottom of their intraday trading ranges. The SPX saw moderate gains by advancing .60% but closed in the lower half of its trading range. Volume was also mixed. It rose 8.43% on the New York and fell 3.52% on the Nasd. Leading stocks didn’t do that well with the leaders index falling .73% on the day. The index closed low in its trading range and volume was about unchanged. The market started out strong and it looked like there would be a follow through today. The major averages faded later in the session and there was no follow through. The INDU did make a new closing high with a solid gain and that seems to have prompted IBD to call a rally resumption. It is kind of a borderline call as the action in the more important averages was not that great. The small and mid-cap stocks were again strong. We are in a kind of middle ground here. Growth and tech stocks continued to be weak and any buys must be in other areas. I guess it is ok to take some positions here, but a good deal of caution is warranted. Maybe there will be a real follow through in the next few days that would make the picture clearer. Jerry
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