The market put in an encouraging session today. The major averages opened higher and after trading sideways for a while late buying came in and all the major averages finished at or near their intraday trading highs. The Nasd averages led the way as the rotation into growth and tech stocks continued. The COMPQ and the NDX gained .98% and 1.25% respectively. The SPX was higher by .23%. Techs and semiconductor stocks were the strongest with the SOX rallying 2.52%. Volume was lower across the board. It fell 2.52% on the Nasd and 6.81% on the New York. This is actually pretty good considering that Friday was a Russell rebalancing day. Leading stocks had a strong session as well. The leaders index gained .40% on the day and closed high in its trading range. It regained its important 17dma which is now support. Volume was also lower. The market put in a good performance today. Most of the major averages made new highs today and volume, although lower than Friday’s level, was supportive. All the major averages finished trading near their highs as buying came in into the close. Quality growth stocks are acting well as leadership has clearly shifted back to growth and tech stocks. This is the kind of action that can lead to higher prices. The good action in leading stocks is just what you want to see as the market usually doesn’t get into big trouble when quality growth stocks are outperforming. We should see higher prices ahead, in at least the short term. Jerry
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