The market rallied again today with the major averages finishing in new high territory. The major averages opened mixed. The SPX traded higher early and rallied throughout the session. The Nasd averages opened strong then lost ground and went negative. They rallied late and all the major averages closed at or very near their intraday trading highs. The SPX was higher by .35% while the COMPQ and the NDX gained .21% and .35% respectively. Volume was slightly higher across the board. It gained a mild .88% on the Nasd and 7.95% on the New York. This is positive combined with the higher prices. Leading stocks had a good day with the leaders index gaining 2.04% on the day. The index closed high in its trading range and is above all its short term moving averages. Volume was higher but still below average. The market acted well overall today. The major averages made new highs on higher volume, even if it was just slightly higher. The rally is intact but my opinion about the strength of the rally hasn’t changed. It is not a strong rally and while you can never tell exactly when it will end, there are signs that this one is long in the tooth. For now ride any good positions, but stay close to the exits. Earnings season starts in earnest tomorrow and that will effect trading in the next two or three weeks. It is expected that the numbers will be very strong. Jerry
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