The market put in a strong performance today. After hesitating early the major averages found a bottom and rallied into the close. Strong buying came in during the last fifteen minutes of trading and all the major averages finished at their intraday trading highs. The Nasd averages led the way with the COMPQ and the NDX gaining 1.05% and 1.37% respectively. The SPX was higher by .65%. The semiconductors showed unusual strength with the SOX rallying 2.26%. Volume was higher across the board. It gained 9.49% on the New York and 8.93% on the Nasd. This shows that large institutional players were buying stocks today. Leading stocks were higher as well with the leaders index gaining 1.11% on the day. The index closed high in its trading range and made a new high on both a closing and an intraday basis. The relative strength line also made a new high and volume was higher but below average. The market acted well today. After early weakness it rallied to close with solid gains. The higher volume as several of the major and secondary averages made new highs is positive. The higher volume showed conviction behind the move. The new leaders index acted well also. The COMPQ and the SOX both regained their 50dma’s, which is encouraging. The gains today were not enough for a follow through so we still lack that confirmation. The market is acting like it wants to go higher, but I wouldn’t get to aggressive right now. Jerry
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