The market staged a rally yesterday after mostly selling off earlier in the week. After opening higher the major averages worked their way up for most of the remainder of the session. All the major averages finished at or very near their intraday trading highs as buying continued into the close. Volume was a disappointment as it was lower across the board. It fell 10.51% on the New York and 8.39% on the Nasd. This shows that there was not as much buying pressure yesterday as there was selling pressure previously. Leading stocks participated in the advance with the leaders index higher by 1.93% on the day. Other indexes of quality growth stocks also did well. The leaders index bounced off its 50dma and closed in the upper half of its trading range. Volume was lower but well above average. The market recovered some of its losses from earlier in the week on Friday. The charts of the major averages still look ok and the COMPQ seems to be holding its important 50dma support level, at least for now. The Charts of the New York averages look better and are not that far from recent highs. The small and mid-cap stocks are doing worse and their charts don’t look very good. While there are some individual stocks doing alright, they are more the exception than the rule. The COMPQ and the leaders index must rally from their 50dma’s here for the market to move higher. If they don’t we will likely see lower prices ahead. Jerry
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