The market had a strong rally today from the start. The major averages opened higher and rallied from there. After holding the gains late the major averages finished pretty strong. The Nasd averages closed near the top of their trading ranges while the New York averages closed in the upper half of their trading ranges. The Nasd averaged were the strongest with the COMPQ and the NDX higher by 2.52% and 2.36% respectively. The SPX rallied 1.04%. Volume was lower across the board. It fell 1.81% on the Nasd and 10.58% on the New York. This means that despite the price gains there was no follow through today. Leading stocks rallied as well with the leaders index gaining 5.94% on the day. The index closed high in its trading range on lower but still above average volume. The index closed right at its declining 17dma and remains below its 50dma. The market had a strong price rally today and several of the major and secondary averages made new highs. The lower volume means that there was no official follow through, but the market is acting better. Due to the new highs I started working on a new leaders index and I thought I would have it ready today. It has proven pretty hard to come up with enough names to build a proper index but I am still working on it and should have it tomorrow. The fact that I am having such a hard time is worrisome. It means that the number of attractive stocks is low compared to previous leaders indexes. It’s really hard to figure out where the market is going in the short term. The market is acting like it wants to go higher, but I wouldn’t bet to much on it. Jerry
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