The market tried to rally today after the decline of the last couple of days, but it was a weak rally. The major averages opened higher and it looked early like there would be a solid bounce. The market quickly started losing steam and sold off into the close, although the close was still positive. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX were higher by .52% and .29%. The SPX was higher by .06%. Volume was lower across the board. It fell 27.06% on the New York and 14.55% on the Nasd. Leading stocks did better with the leaders index gaining 1.69% on the day. The index closed in the lower half of its trading range on lower and below average volume. The index also closed right on its 17dma. You would have liked to see a strong bounce after a decline like yesterday’s. That really didn’t happen. The strong open didn’t last as selling came in and the major averages closed weak. Volume was also light as there was little buying pressure from large institutional players. The strong open and weak close is not encouraging action after the recent pullback. The damage done is still moderate and the overall rally is still in place, but for that to continue we must see some solid positive action to show that this is just a minor pullback and not something more serious. Jerry
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