The market opened higher today as the rally from yesterday continued. The major averages gapped higher at the open as the deal for a short term extension of the debt ceiling continued and it looked like it would happen. The market held most of the gains until some late selling came in. The Nasd averages were a little stronger with the COMPQ and the NDX gained 1.05% and .88% respectively. The SPX rallied .83%. All the major averages finished low in their intraday trading ranges due to the late selling. Volume declined across the board. It fell 12.50% on the Nasd and 6.73% on the New York. Leading stocks did well today with the leaders index gaining 2.40% on the day. The index closed in about the middle of its trading range on lower and below average volume. The index tried to overcome its short term 9dma but couldn’t hold it. The market continued to rally today based on a deal on the debt ceiling. The market mostly held the gains until some late selling came in. The SPX came close to its 50dma while the Nasd averages remain further below this important resistance level. The market is trying to recover from its recent decline and will be in position to produce a follow through starting tomorrow. The decline in volume today was disappointing as it showed that large institutional players were not that active today. The 50dma of the major averages and the leaders index are the major hurdles facing any attempted rally right now. It they can’t overcome this important moving average any attempted rally will quickly go nowhere. The employment report comes out before the open tomorrow and that will set the tone for trading, at least early on. Jerry
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