The market staged a solid rally today after Friday’s declines. The major averages opened higher and worked their way up for pretty much the rest of the day. All the major averages finished at or very near their intraday trading highs. The New York averages were the strongest with the SPX gaining 1.40%. The COMPQ and the NDX were higher by .79% and .62% respectively. The greatest strength was in the small and mid-cap stocks with the RUT and the MID higher by 2.16% and 2.29% respectively. Volume was lower across the board, as you would expect after an expiration day. It fell 11.01% on the Nasd and 31.89% on the New York. Leading stocks rallied today with the leaders index gaining 2.72% on the day. The index closed high in its trading range but volume was lower, as you would expect after an expiration day. It was about average and the index remains below its 17dma. The market rebounded pretty smartly today after Friday’s sell off. Dovish comments about interest rates triggered a rally. The SPX and the NYA regained their 50dam’s in positive action. The INDU did not. The RUT regained this important moving average also. Today’s action was positive. The NDX made a new high last week and eliminated the possible head and shoulders. The COMPQ hasn’t yet but it is close. We are in a trendless market that goes in one direction only to reverse itself. It is a difficult market to make substantial progress in but there are likely some modest gains to be made. Jerry
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